The AGILE Issue - Agile and EVM - Measurable News 1-2015

45
THE MEASURABLE NEWS 2015.01 The Quarterly Magazine of the College of Performance Management mycpm.org INSIDE THIS ISSUE 07 11 39 Context on Agile Initiatives and the Compendium Articles By Dale Gillam A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVM By Ray W. Stratton Save the Date and Call for Abstracts for EVM World 2015 By Susan Wood 20 USD/AUD | 15 EUR/GBP

Transcript of The AGILE Issue - Agile and EVM - Measurable News 1-2015

Page 1: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

INSIDETHISISSUE

07 11 39Context on Agile Initiatives and the Compendium Articles

By Dale Gillam

A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVM

By Ray W Stratton

Save the Date and Call for Abstracts for EVM World 2015

By Susan Wood

20 USDAUD | 15 EURGBP

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

CONTENTS05 Update from the VP Communications

Mark Phillips PMP MAPM

07 Context on Agile Initiatives and the Compendium ArticlesDale Gillam CPM VP of Research and Standards

11 A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVMRay W Stratton PMP EVP

39 Save the Date and Call for Abstracts for EVM World 2015Susan Wood

41 CPM Washington DC Special Interest Group (SIG) September 18 2014 MeetingBarbara Phillips

43 CPM Tennessee Valley (CPMTV) Chapter Quarterly Meeting ndash December 2 2014Norman Dean

44 VendorsServices

2015 ISSUE 01

THE COLLEGE OF PERFORMANCE MANAGEMENT

2015 BOARD amp STAFFPRESIDENTGary W Troop 310-365-3876 bull garytroopmycpmorg

EXECUTIVE VICE PRESIDENTWayne Abba 703-658-1815 bull wayneabbamycpmorg

VICE PRESIDENT OF FINANCEBuddy Everage 202-507-4372 bull buddyeveragemycpmorg

VICE PRESIDENT OF ADMINISTRATIONLauren Bone +44 (0) 7766 97 40 63 bull laurenbonemycpmorg

VICE PRESIDENT OF CONFERENCE amp EVENTSSusan Wood850-585-4830 bull susanwoodmycpmorg

VICE PRESIDENT OF EDUCATION amp CERTIFICATIONBill Mathis703-825-5588 bull billmathismycpmorg

VICE PRESIDENT OF RESEARCH amp STANDARDSDale Gillam703-431-6398 bull dalegillammycpmorg

VICE PRESIDENT OF GLOBAL OUTREACHKym Henderson61-414-428-437 bull kymhendersonmycpmorg

VICE PRESIDENT OF COMMUNICATIONSMark Phillips248-914-3774 bull markphillipsmycpmorg

PAST PRESIDENTSusan Wood850-585-4830 bull susanwoodmycpmorg

EXECUTIVE DIRECTORDon Kaiser703-370-7885 bull kaisermycpmorg

THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT

EDITORIAL STAFFPublisher College of Performance ManagementStory Editor Peter SchwarzDesign id365 Design + CommunicationsCommunications VP Mark Phillips

EDITORIAL COPY Editorial contributions photos and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters Please follow the author guidelines posted on the CPM web site Letters submitted to the editor will be considered for publication unless the writer requests otherwise Letters are subject to editing for style accuracy space and propriety All letters must be signed and initials will be used on request only if you include your name CPM reserves the right to refuse publication of any letter for any reason We welcome articles relevant to project management The Measurable News does not pay for submissions Articles published in The Measurable News remain the property of the authors

ADVERTISINGAdvertising inquiries submissions and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters Advertising rates are $1000 for inside front or back cover (full-page ad only) $800 for other full-page ads $500 for half-page ads and $300 for quarter-page ads Issue sponsorships are available at $2500 per issue Business card ads are available for $100 per issue (or free with full-page ad) Rates are good from January 1 2015 ndash December 31 2015 College of Performance Management reserves the right to refuse publication of any ad for any reason

SUBSCRIPTIONSAll College of Performance Management publications are produced as a benefit for College of Performance Management members All change of address or membership inquiries should be directed to College of Performance Management 12100 Sunset Hills Road Suite 130 Reston VA 20190 Ph 7033707885 bull Fx 7033701757 wwwmycpmorg

All articles and letters represent the view of the authors and not necessarily those of College of Performance Management Advertising content does not signify endorsement by College of Performance Management Please notify College of Performance Management for single copy or reproduction requests Appropriate charges will apply

copy 2015 by the College of Performance Management All rights reserved

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

05

UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM

Happy 2015

Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue

Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA

With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more

We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars

Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg

Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects

Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team

As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg

Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication

SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs

bull Earned value management (EVM) planning scheduling and cost management

bull Program management office (PMO) support and systems engineering

Your Partner in Successful Programs

949 975 1550

wwwsmawinscom

clientservicessmawinscom

A Winning Partnership

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

07

The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story

A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today

The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material

Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists

from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc

bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1

bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26

bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg

bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news

This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects

CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

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sCo

mm

on To

uch

Poin

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Exec

utiv

e M

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end

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and

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sist

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Prog

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Man

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Xx

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vidu

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aditi

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spon

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lity

for a

nd a

utho

rity

to

acco

mpl

ish

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ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

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aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

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le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

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Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

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n co

mpa

ny a

nd c

ontr

act s

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may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

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rgan

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lann

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Budg

etin

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ntin

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Revi

sion

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Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

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sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

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Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

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EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

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EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 2: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

CONTENTS05 Update from the VP Communications

Mark Phillips PMP MAPM

07 Context on Agile Initiatives and the Compendium ArticlesDale Gillam CPM VP of Research and Standards

11 A Compendium on The Application of EVM to Agile Development and The Application of Agile Development to EVMRay W Stratton PMP EVP

39 Save the Date and Call for Abstracts for EVM World 2015Susan Wood

41 CPM Washington DC Special Interest Group (SIG) September 18 2014 MeetingBarbara Phillips

43 CPM Tennessee Valley (CPMTV) Chapter Quarterly Meeting ndash December 2 2014Norman Dean

44 VendorsServices

2015 ISSUE 01

THE COLLEGE OF PERFORMANCE MANAGEMENT

2015 BOARD amp STAFFPRESIDENTGary W Troop 310-365-3876 bull garytroopmycpmorg

EXECUTIVE VICE PRESIDENTWayne Abba 703-658-1815 bull wayneabbamycpmorg

VICE PRESIDENT OF FINANCEBuddy Everage 202-507-4372 bull buddyeveragemycpmorg

VICE PRESIDENT OF ADMINISTRATIONLauren Bone +44 (0) 7766 97 40 63 bull laurenbonemycpmorg

VICE PRESIDENT OF CONFERENCE amp EVENTSSusan Wood850-585-4830 bull susanwoodmycpmorg

VICE PRESIDENT OF EDUCATION amp CERTIFICATIONBill Mathis703-825-5588 bull billmathismycpmorg

VICE PRESIDENT OF RESEARCH amp STANDARDSDale Gillam703-431-6398 bull dalegillammycpmorg

VICE PRESIDENT OF GLOBAL OUTREACHKym Henderson61-414-428-437 bull kymhendersonmycpmorg

VICE PRESIDENT OF COMMUNICATIONSMark Phillips248-914-3774 bull markphillipsmycpmorg

PAST PRESIDENTSusan Wood850-585-4830 bull susanwoodmycpmorg

EXECUTIVE DIRECTORDon Kaiser703-370-7885 bull kaisermycpmorg

THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT

EDITORIAL STAFFPublisher College of Performance ManagementStory Editor Peter SchwarzDesign id365 Design + CommunicationsCommunications VP Mark Phillips

EDITORIAL COPY Editorial contributions photos and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters Please follow the author guidelines posted on the CPM web site Letters submitted to the editor will be considered for publication unless the writer requests otherwise Letters are subject to editing for style accuracy space and propriety All letters must be signed and initials will be used on request only if you include your name CPM reserves the right to refuse publication of any letter for any reason We welcome articles relevant to project management The Measurable News does not pay for submissions Articles published in The Measurable News remain the property of the authors

ADVERTISINGAdvertising inquiries submissions and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters Advertising rates are $1000 for inside front or back cover (full-page ad only) $800 for other full-page ads $500 for half-page ads and $300 for quarter-page ads Issue sponsorships are available at $2500 per issue Business card ads are available for $100 per issue (or free with full-page ad) Rates are good from January 1 2015 ndash December 31 2015 College of Performance Management reserves the right to refuse publication of any ad for any reason

SUBSCRIPTIONSAll College of Performance Management publications are produced as a benefit for College of Performance Management members All change of address or membership inquiries should be directed to College of Performance Management 12100 Sunset Hills Road Suite 130 Reston VA 20190 Ph 7033707885 bull Fx 7033701757 wwwmycpmorg

All articles and letters represent the view of the authors and not necessarily those of College of Performance Management Advertising content does not signify endorsement by College of Performance Management Please notify College of Performance Management for single copy or reproduction requests Appropriate charges will apply

copy 2015 by the College of Performance Management All rights reserved

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

05

UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM

Happy 2015

Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue

Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA

With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more

We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars

Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg

Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects

Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team

As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg

Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication

SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs

bull Earned value management (EVM) planning scheduling and cost management

bull Program management office (PMO) support and systems engineering

Your Partner in Successful Programs

949 975 1550

wwwsmawinscom

clientservicessmawinscom

A Winning Partnership

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

07

The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story

A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today

The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material

Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists

from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc

bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1

bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26

bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg

bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news

This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects

CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

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dre

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Role

Agile

EV

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Poin

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Prog

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rsquos op

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Mus

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cess

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ontr

act e

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and

chal

leng

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to fi

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ithin

the

requ

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s (C

MM

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748

agi

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M

ay b

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a ldquob

arrie

r bus

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lso

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be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

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hich

cou

ld b

e ac

com

plis

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via

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SCRU

M m

aste

r rol

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rela

tive

to c

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ontr

act s

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(the

larg

er th

e co

ntra

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PM

cou

ld b

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ore

of a

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CRU

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nd m

anag

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k co

nsen

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reas

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a sm

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e PM

cou

ld a

lso

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e SC

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aste

r)

Agile

pro

ject

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ften

put

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aditi

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pro

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a di

fficu

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e or

she

is to

ld f

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to m

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Agile

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dist

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aditi

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spon

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s ag

ile a

bout

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any

of th

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Plan

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how

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(AKA

ldquoqua

ntity

rdquo) w

ill b

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com

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hed

let t

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Prog

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ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 3: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE COLLEGE OF PERFORMANCE MANAGEMENT

2015 BOARD amp STAFFPRESIDENTGary W Troop 310-365-3876 bull garytroopmycpmorg

EXECUTIVE VICE PRESIDENTWayne Abba 703-658-1815 bull wayneabbamycpmorg

VICE PRESIDENT OF FINANCEBuddy Everage 202-507-4372 bull buddyeveragemycpmorg

VICE PRESIDENT OF ADMINISTRATIONLauren Bone +44 (0) 7766 97 40 63 bull laurenbonemycpmorg

VICE PRESIDENT OF CONFERENCE amp EVENTSSusan Wood850-585-4830 bull susanwoodmycpmorg

VICE PRESIDENT OF EDUCATION amp CERTIFICATIONBill Mathis703-825-5588 bull billmathismycpmorg

VICE PRESIDENT OF RESEARCH amp STANDARDSDale Gillam703-431-6398 bull dalegillammycpmorg

VICE PRESIDENT OF GLOBAL OUTREACHKym Henderson61-414-428-437 bull kymhendersonmycpmorg

VICE PRESIDENT OF COMMUNICATIONSMark Phillips248-914-3774 bull markphillipsmycpmorg

PAST PRESIDENTSusan Wood850-585-4830 bull susanwoodmycpmorg

EXECUTIVE DIRECTORDon Kaiser703-370-7885 bull kaisermycpmorg

THE MEASURABLE NEWS IS AN OFFICIAL PUBLICATION OF THE COLLEGE OF PERFORMANCE MANAGEMENT

EDITORIAL STAFFPublisher College of Performance ManagementStory Editor Peter SchwarzDesign id365 Design + CommunicationsCommunications VP Mark Phillips

EDITORIAL COPY Editorial contributions photos and miscellaneous inquiries should be addressed and sent to the editor at the College of Performance Management (CPM) headquarters Please follow the author guidelines posted on the CPM web site Letters submitted to the editor will be considered for publication unless the writer requests otherwise Letters are subject to editing for style accuracy space and propriety All letters must be signed and initials will be used on request only if you include your name CPM reserves the right to refuse publication of any letter for any reason We welcome articles relevant to project management The Measurable News does not pay for submissions Articles published in The Measurable News remain the property of the authors

ADVERTISINGAdvertising inquiries submissions and payments (check or money order made payable to the College of Performance Management) should be sent to CPM headquarters Advertising rates are $1000 for inside front or back cover (full-page ad only) $800 for other full-page ads $500 for half-page ads and $300 for quarter-page ads Issue sponsorships are available at $2500 per issue Business card ads are available for $100 per issue (or free with full-page ad) Rates are good from January 1 2015 ndash December 31 2015 College of Performance Management reserves the right to refuse publication of any ad for any reason

SUBSCRIPTIONSAll College of Performance Management publications are produced as a benefit for College of Performance Management members All change of address or membership inquiries should be directed to College of Performance Management 12100 Sunset Hills Road Suite 130 Reston VA 20190 Ph 7033707885 bull Fx 7033701757 wwwmycpmorg

All articles and letters represent the view of the authors and not necessarily those of College of Performance Management Advertising content does not signify endorsement by College of Performance Management Please notify College of Performance Management for single copy or reproduction requests Appropriate charges will apply

copy 2015 by the College of Performance Management All rights reserved

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

05

UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM

Happy 2015

Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue

Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA

With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more

We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars

Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg

Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects

Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team

As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg

Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication

SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs

bull Earned value management (EVM) planning scheduling and cost management

bull Program management office (PMO) support and systems engineering

Your Partner in Successful Programs

949 975 1550

wwwsmawinscom

clientservicessmawinscom

A Winning Partnership

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

07

The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story

A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today

The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material

Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists

from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc

bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1

bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26

bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg

bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news

This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects

CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

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An

dre

a N

iber

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eid

os

Role

Agile

EV

D

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iptio

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sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

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end

orse

the

agile

and

EV

proc

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s an

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sist

on

thei

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s ap

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ead

by e

xem

plar

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and

com

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Prog

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Man

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Xx

The

indi

vidu

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aditi

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ly d

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ith re

spon

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for a

nd a

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to

acco

mpl

ish

prog

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obj

ectiv

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r pla

nnin

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udge

ting

acq

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risk

and

m

anag

emen

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t the

con

trac

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requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

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d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

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tp

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ays

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 4: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

05

UPDATE FROM THE VP COMMUNICATIONSMark Phillips PMP MAPM

Happy 2015

Wersquore starting out the year with a special issue dedicated to Agile and EVM The articles in this issue are the result of over seven years of activity discussions and workshop sessions within the CPM Community primarily led by Ray Stratton We thank Ray for his dedication and work to move this topic forward and pull together this issue

Agile and EVM remained a hot topic at the International Integrated Program Management Workshop in the Fall of 2014 Irsquom happy to report that attendance was up at the conference and the level of learning networking and senior leadership engagement was fantastic This comes from the hard work of all the volunteers and staff at CPM ICEAA and NDIA

With that workshop behind us our attention has turned to EVM World 2015 It is taking place May 27 ndash 29th in New Orleans and promises to be an incredible event for learning training interaction with experts and unparalleled dialogue between government and industry Learn more at wwwevmworldorg We continue to hold regional events in the Tennessee Valley area and Washington DC area Visit httpwwwmycpmorgabout-uschapters to learn more

We had 10 webinars last year from experts such as Gary Humphreys Glenn Alleman Luis Contreras Dr David Hulett Dr Robert Van de Velde and Tom Shanahan on a wide range of topics We are planning a strong series of webinars in 2015 Keep posted on the latest webinars at httpwwwmycpmorgnews-eventswebinars

Irsquod like to introduce a new member of the Measurable News team We are pleased to have Matthew T Gonzales join the volunteer team to help put together the Measurable News on a quarterly basis Please send Matt ideas for articles in care of Don Kaiser at the CPM office at kaisermycpmorg

Matt is a Senior Project Business Manager at NASArsquos Jet Propulsion Laboratory He is a30 year professional who has managed large complex satellite and aerospace projects He has extensive experience in implementing project controls and earned value management techniques on DoD Civil and commercial projects

Matt is the author of several papers including lsquoConducting Integrated Baseline Reviews on NASA Flight Projectsrsquo lsquoEstablishing a Performance Measurement Baselinersquo and lsquoEarned Value Analysis using the FAIR model and Empower Analyticsrsquo Matt is also the recipient of the NASA service medal for EV management on the Mars Reconnaissance Orbiter Please join me in welcoming him to the team

As usual donrsquot hesitate to reach out to me with any comments suggestions or to say hello My email is markphillipsmycpmorg

Wishing everyone a great 2015-MarkMark Phillips PMP MAPMVice President - Communication

SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs

bull Earned value management (EVM) planning scheduling and cost management

bull Program management office (PMO) support and systems engineering

Your Partner in Successful Programs

949 975 1550

wwwsmawinscom

clientservicessmawinscom

A Winning Partnership

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

07

The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story

A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today

The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material

Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists

from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc

bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1

bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26

bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg

bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news

This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects

CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

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Agile

24 The Measurable News 201501 | mycpmorg

Role

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EV

D

escr

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mm

on To

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klog

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klog

25The Measurable News 201501 | mycpmorg

Role

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EV

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 5: The AGILE Issue - Agile and EVM - Measurable News 1-2015

SMampA is a premier program lifecycle consulting rm with over 30 years of experience We help companies successfully pursue win and perform complex programs

bull Earned value management (EVM) planning scheduling and cost management

bull Program management office (PMO) support and systems engineering

Your Partner in Successful Programs

949 975 1550

wwwsmawinscom

clientservicessmawinscom

A Winning Partnership

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

07

The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story

A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today

The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material

Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists

from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc

bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1

bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26

bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg

bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news

This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects

CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

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Agile

24 The Measurable News 201501 | mycpmorg

Role

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EV

D

escr

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mm

on To

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klog

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klog

25The Measurable News 201501 | mycpmorg

Role

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EV

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 6: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

07

The Project Managerrsquos primary job is to deliver a successful project There are over 445 million results on the internet telling us how to know if a project is successful let alone all the textbooks and advice by anyone in the hallway The Project Manager has to formulate and execute an integrated management solution from all this input while dealing with never ending project changes and stakeholders with competing views of success Project Managers have to become modern day storytellers able to integrate the various project components sub-plots challenges and results into a cohesive story that can be shared in the manner needed for a given stakeholder Our opportunity as practitioners and thought leaders in the supporting disciplines is to continue developing the depth in our primary areas while working together to better align and integrate these best practices into an integrated management framework This strengthened framework built on generally accepted best practices will aid our Project Managerrsquos ability to deliver success and to tell the Projectrsquos story

A hot topic for the foreseeable future is the integration andor alignment of Agile management practices with Earned Value Management (EVM) and traditional project scheduling practices A lot of thoughts and initial practices have been shared by many people A number of initiatives are underway with the goal of maturing these practices and to create shared adoption of them While we work to perfect the details it is important to keep in mind that the Project Managers are moving forward with the best we can give them today

The articles in this Measurable News are provided to stimulate discussion Special thanks to Ray Luis Howard Eric Ron Andrea and Glen for volunteering their time in the many discussions their team held and for writing the material

Upcoming related initiativesbull The CPM DC Chapter is hosting an Agile and EVM Round Table discussion with panelists

from Lockheed Martin IBM and L3 on 121 You can participate in person or via teleconference Details are at wwwmycpmorgcpmwdc

bull The NDIA IPMD has an on-going Agile Working Group to share best practices The POC is Ms Kathy Dailey (KathyDaileygditcom) Additionally the next NDIA IPMD meeting is 127-28 and details are at wwwndiaorgmeetings5PM1

bull PARCA is leading a two day business meeting on 219-20 to share related successes and failures The POC is Mr Kevin McKenna (kevincmckenna2ctrmailmil) If interested in attending RSVP by 26

bull CPM is soliciting speakers on related best practices to be shared at EVM World from 527-29 Details will be posted soon at wwwmycpmorg

bull If you are interested in past Measurable News articles on these topics or want to submit an article for future publication visit wwwmycpmorgnews-eventsmeasurable-news

This is an open invitation to engage in this ongoing dialogue to better support our Project Managers in delivering successful projects

CONTEXT ON AGILE INITIATIVES AND THE COMPENDIUM ARTICLESBy Dale Gillam CPM VP of Research and Standards

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

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Agile

24 The Measurable News 201501 | mycpmorg

Role

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EV

D

escr

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mm

on To

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klog

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klog

25The Measurable News 201501 | mycpmorg

Role

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EV

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 7: The AGILE Issue - Agile and EVM - Measurable News 1-2015

As you may be aware the College of Performance Management has been newly transformed as an independent entity after a mutual and amicable separation from the Project Management Institute (PMIreg)

Come join us and get involved in shaping the exciting future of the ldquonewrdquo CPMMembership is $85year Register online at wwwmycpmorg

CPM is the premier organization for earned value management (EVM) and project planning and controls As an international non-profit organization CPM is dedicated to project management and performance management

CPM Objectives bull Promote Earned Value Management and Project Planning and Control Foster the recognition and use of earned

value management and other project planning and control techniques as integrating processes for project managementbull Disseminate Information Provide opportunities for the exchange of ideas information solutions and applicationsbull Improve Community Encourage and enable the advancement of theory and application through research

standards and educationbull Grow Professionals Provide our diverse membership of project management professionals with growth

opportunities through leadership education networking and other benefits of a professional associationbull Enhance Membership and Benefits Improve membership benefits and expand our membership base through

continued development of a professional association

Membership Benefitsbull Discount to CPM Conferencesbull Access to latest information on performance managementbull Networking with other professionals industry leaders and academiabull Quarterly magazine The Measurable News bull Access to CPM electronic librarybull Monthly Webinars

Conferencebull Earn PDUs for Project Management Professionalsbull Update skillsbull Networkbull Participate in EVM Training and Certificate Program

Active members serving on a committee as a speaker volunteer or as a member of the Governing Board gives you the greatest reward of all ndash contributing your knowledge and experience to benefit others

For more information email execadminmycpmorg or call (703) 370-7885

The ldquoNewrdquo College of Performance Management (CPM) ndash JOIN NOW

Join CPM now at wwwmycpmorgPMI is a registered mark of the Project Management Institute Inc

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

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Proj

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In A

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hich

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rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

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ntra

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PM

cou

ld b

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ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

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whe

reas

on

a sm

alle

r con

trac

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cou

ld a

lso

be th

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RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

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aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

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ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

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ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

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po

nsib

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es

http

w

ww

pin

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ent

com

co

ntro

l-ac

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ons

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ties

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w

ww

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IGN

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ease

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w

ww

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 8: The AGILE Issue - Agile and EVM - Measurable News 1-2015

Membership Type New Member Renewal

Name Date

CompanyOrganization

Select one Government Employee Industry

Academic Consulting

Address Type Work Home

Address

City State ZipPost Code Country

Phone (Daytime) Phone (Evening)

Email Address

Dues Annual Membership Dues - $85

Payment Visa Mastercard Check Enclosed

American Express Discover

Card Number

Exp Date Security Code Billing Address Zip Code

SignatureBy becoming a member you hereby agree to abide by the CPM Code of Ethics as shown on the CPM web site ndash httpwwwmycpmorgabout-uscode-of-ethics

PLEASE RETURN THE COMPLETED APPLICATION WITH PAYMENT BY FAX OR MAIL

College of Performance ManagementATTN Don Kaiser

12100 Sunset Hills Road Suite 130Reston VA 20190

Fax (703) 435-4390 outside US ndash Country Code +1-435-4390

For more information contact Kaisermycpmorg or call (703) 370-7885 outside US ndash Country Code +1-703-370-7885

CPM Membership Application

Fax today to (703) 435-4390

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

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Proj

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In A

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the

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need

for t

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cou

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(the

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CRU

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ften

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lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 9: The AGILE Issue - Agile and EVM - Measurable News 1-2015

EVM World 2015THE PROJECT PERFORMANCE MANAGEMENT WORKSHOP

reg

31st Annual International WorkshopMay 27-29 2015 bull Hyatt Regency New Orleans 601 Loyola Avenue New Orleans LA 70113504-561-1234 bull neworleanshyattcom

bull Update your skills with the latest Earned Value Management (EVM) trends tools and techniques

bull Learn through training practice symposia as well as workshops

bull Earn PDUs (for PMPs)

bull Network with earned value professionals from around the world

For more information visit

wwwmycpmorg or wwwevmworldorg

copy2014 CPM EVM World is a registered trademark of CPM REP PMI and the Registered Education Provider logo are registered marks of the Project Management Institute Inc

SAVETHE DATE

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

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spon

sibl

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end

orse

the

agile

and

EV

proc

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sist

on

thei

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xem

plar

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mitm

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roce

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Prog

ram

Man

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Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

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and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

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EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

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see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 10: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

11

Contributors

Luis C ContrerasAzTech International LLC (goAzTechcom)

Howard ZillmanNorthrup Grumman

Eric Christoph PMP EVPL-3 Communications STRATIS

Ron TerbushLockheed Martin ISampGS

Andrea NibertLeidos

Glen B Alleman Niwot Ridge LLC

INTRODUCTION

A COMPENDIUM ON THE APPLICATION OF EVM TO AGILE DEVELOPMENT AND THE APPLICATION OF AGILE DEVELOPMENT TO EVM - OCTOBER 2014Edited by Ray W Stratton PMP EVP

Agile development approaches the task of developing software systems from a new angle Rather than beginning with fixed requirements which remain the basis for final product delivery Agile begins with a feature list (stories) that may change over the duration of the project The expectation is that the cost and schedule at final delivery is as planned and thus some of the final list of desired features may not be completed due to lack of time or budget Furthermore as the project is underway the anticipated environment at the time of final delivery may change and thus the initial feature list might change during the projectrsquos lifetime to help ensure a product of maximum value at the time of delivery Lastly knowing itrsquos unlikely that all features will be implemented means the priority of each is constantly being evaluated by the usercustomer thus changing plans for remaining work Agile development continuously reviews both the scope and technical priorities to keep pace with the evolving environment while working within a defined budget and timeline The goal is to get the most value for the funds spent and time used Less important features might be left behind

EVM has traditionally been applied to waterfall type development with fixed scope and fixed technical requirements EVMrsquos traditional strength has been in monitoring the cost and schedule performance and providing estimates at complete for the final cost and schedule when all the requirements are met It has relied on the assumption that (1) the requirements are fixed (unless re-baselined) and (2) all requirements must be met in the final delivery

How can EVM apply when ldquodonerdquo might mean less than ldquoallrdquo What if the project goal is to get the most bang for the buck not spend whatever time and budget is needed to get it all Given this scenario how can EVM apply to agile development How can agile development embrace EVM What is the best way for government programs to enable AGILE development while still obtaining useful EVM data

The answers are still evolving EVM and Agile have worked in partnership But doing so can challenge traditional thinking for both camps

This collection of papers comes from authors with deep understanding of both EVM and Agile Development They or their employers have offered to submit these papers in an effort to share ideas and successes in the use of EVM in agile development Their ideas may not fit your needs but should stimulate thoughts about how to apply EVM and Agile in concert

If you have not tried Agile do so If you have not tried EVM on your agile project do so Only then can you help to contribute to the growing body of experience and ideas to share

WHY AN AGILE APPROACH NEEDS TO BE DIFFERENTLuis C Contreras AzTech International LLC (goAzTechcom)

QUICK DEFINITIONSFirst letrsquos define Agile broadly and understand if it is indeed different from EVM based on high-level definitions or objectives For the purposes of this paper letrsquos assume that Agile is an umbrella term that includes Scrum Extreme (XP) Programming and other similar practices

AGILEAgile project management might be called a ldquofeatures-drivenrdquo ldquovalues-drivenrdquo and ldquotime-drivenrdquo approach to managing software projects by cycling through rather short sprints or iterations of feature development to produce tangible value in multiple deliverables Agile includes methods with terms that are unfamiliar to most EVM practitioners These terms include scrums scrum masters XP programming releases stories (epics themes and just plain stories) story points story owners sprints backlogs burn-down charts burn-up charts

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

e to

end

orse

the

agile

and

EV

proc

esse

s an

d in

sist

on

thei

r bus

ines

s ap

plic

atio

n L

ead

by e

xem

plar

ded

icat

ion

and

com

mitm

ent t

o ea

ch p

roce

ss

Prog

ram

Man

ager

Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

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see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 11: The AGILE Issue - Agile and EVM - Measurable News 1-2015

12 The Measurable News 201501 | mycpmorg

velocity standup meetings and more Agile can be used for small or large projects and even for projects less than one year long though certainly for multi-year projects as well Agile has proponents who promote a continuum of agile complexity that ranges from using ldquoagile conceptsrdquo to adopting formal Agile such as SCRUM and certification for SCRUM Masters or practitioners

EARNED VALUEEarned Value might be called a ldquoplan-drivenrdquo or ldquobaseline-drivenrdquo approach that emphasizes management by exception using variance thresholds to manage any kind of complex project including software or hardware systems construction or other development and production efforts EV uses terms known throughout the aerospace defense and other sectors with large government-funded projects usually exceeding $20M and typically longer than one year EV has proponents who promote a continuum of EV complexity that ranges from using ldquoEV conceptsrdquo to what some call ldquoEV-Literdquo and then to what is called ldquofull-blown EVMSrdquo requiring adherence to the ANSIEIA-748rsquos 32 guidelines for implementing an EVMS The US Government requires ANSIEIA-748 compliance for government-funded projects over $20M and in some cases for smaller projects too Other national governments also require or encourage using ANSIEIA-748 or some variation for managing large and risky projects

DISAGREEMENTSSome Agile proponents consider EV old-fashioned perhaps even outdated and not flexible enough to manage software projects Some suggest that EV emphasizes ldquowaterfall planningrdquo where work is highly sequential conceptrequirementsdesigndevelopcodetestdeliver Presumably the waterfall approach can fail when surprises come too late in the project resulting in more rework and fewer options to innovate past the problems

Some Agile proponents consider that a better alternative to EV is to move away from ldquowaterfallrdquo or ldquosequentialrdquo approaches toward more iterative designdeveloptest cycles that produce early results and give the project team more time to dial in lessons learned from multiple development cycles

Some EV proponents consider that Agile has beneficial concepts but that perhaps it is too flexible and not respectful of baseline management or that it can lead to too frequent requirement or work scope changes and a baseline that is more like a moving target Some EV practitioners view Agile negatively and even with disdain as perhaps too chaotic unplanned unreliable and not faithful to the rigorous baseline controls that formal EVM entails

THE FACTSFor at least a decade EV project management directives (at least for US government-funded efforts) have promoted moving from the waterfall approach to ldquoevolutionary acquisitionrdquo and

ldquospiral developmentrdquo (Since 2003 per httpherdingcatstypepadcommy_weblog200607waterfall_and_ahtml)

ITSoftware system projects are notorious for overruns and delaysmdashas are the large complex and risky projects that use full-blown EVMS The root causes include more than the project management approach and come down to requirements (mis-)management scope creep unfortunate government acquisition management incentives unfortunate contractor awards or incentives for project execution conflicting stakeholdercontractor incentives and more

CONCLUSIONS The opportunity for using the best of Agile and EV may lie somewhere in the middle EVrsquos baseline-driven approach combined with Agilersquos iterative planning approach do work together Perhaps they share the same objectives including

bull EV can be more flexible and consider other ways to organize control accounts and manage changes

bull The EV team and the Agile team can work together to help assure that EV processes can appropriately flex adapt to the Agile processesmdashwhile assuring that the Agile processes do not violate approved processes

bull For projects with EVMS compliance requirements the EV and Agile team can document tailored approaches to minimize compliance risks and show that the organization proactively documented processes to assure compliance

bull Defining the work as early and clearly as possiblemdashand clearly and frequently communicating the requirements User stories provide a way to communicate purpose objectives and acceptance criteriamdashyet leave room for discovery and innovation to get to the result

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

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AN

D E

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An

dre

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Role

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Mus

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MM

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O A

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748

agi

le e

tc)

M

ay b

e ut

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d as

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arrie

r bus

terrdquo

A

lso

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iden

tified

as

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ect M

anag

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t Man

ager

In A

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the

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ay n

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e a

need

for t

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M ro

le w

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cou

ld b

e ac

com

plis

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the

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aste

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rela

tive

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(the

larg

er th

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PM

cou

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ore

of a

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CRU

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O

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lann

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irect

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d ev

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Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

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lope

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ster

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se i

nteg

rato

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c

Agile

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lann

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ery

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OBS

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ultip

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nctio

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Prod

uct O

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rx

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alue

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duct

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rder

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pres

ents

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ehol

der

The

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duct

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ner m

ust b

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aila

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ns w

orki

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rs to

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and

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r nee

ds a

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evel

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g a

Visi

on a

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Pro

duct

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klog

that

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s to

ach

ieve

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on T

his

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mig

ht b

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oses

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lass

ic P

roje

ct M

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er ro

le

How

ever

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igni

fican

t di

ffere

nces

Fo

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mpl

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oduc

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ner d

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ontr

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r prio

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uent

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m 1

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clud

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e an

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r can

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plie

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rect

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tely

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ate

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reg

ardl

ess

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ntia

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free

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oriz

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pla

nnin

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NSI

748

Pla

nnin

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Bu

dget

ing

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Revi

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rogr

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pons

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ork

with

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Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

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Man

ager

(CA

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r the

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g c

oord

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k w

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rovi

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r all

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chni

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issu

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r the

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mus

t hav

e ar

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vide

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umbr

ella

cat

egor

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Res

pons

ibili

ty A

utho

rity

and

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unta

bilit

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ithou

t th

ese

thre

e cr

itica

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ribut

es a

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M w

ill n

ot b

e ab

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per

form

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ctiv

ely

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sim

ply

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me

an e

mbe

dded

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rter

in th

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ogra

m

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mus

t be

give

n fu

ll re

spon

sibi

lity

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anag

ing

the

cost

sch

edul

e an

d te

chni

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erfo

rman

ce o

f th

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ntro

l Acc

ount

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uppo

rtin

g al

l cus

tom

er m

eetin

gs a

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ests

pe

rtai

ning

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ntro

l Acc

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ffect

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t hav

e ow

ners

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full

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ority

to d

irect

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ithin

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d vi

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oriz

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ate

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rfer

ence

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agem

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tay

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chni

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AN

SI 7

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rgan

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g P

lann

ing

and

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etin

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naly

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Revi

sion

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Dep

endi

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aste

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SI 7

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 12: The AGILE Issue - Agile and EVM - Measurable News 1-2015

13The Measurable News 201501 | mycpmorg

bull Developing realistic estimates for budgets forecasts story points and user story planningmdashand dialing in lessons learned from historical data past performance burn rates velocity etc

bull Using the rolling wave concept to detail plan near term work in discrete work packages and far term work in planning packages

bull Having solid completion accomplishment criteria as the key to both EVrsquos Quantifiable Backup Data (QBD) for discrete work packages and Agilersquos ldquodone is donerdquo mantra

bull Being flexible enough to allow for more frequent baseline changes even in the current period if that result is better and leads to more meaningful progress and deliverables

bull Being rigorous enough with baseline changes (as consistent with the release and sprint planning processes) such that there is transparency and enough control to trace the history of baseline scope and budget changes

bull Assuring that we are not ldquorobbing from the futurerdquo to show earlyeasy gains only to add more risk rework and unpleasant surprises down the road

bull Both EV and Agile rely on accurate actual cost collection to assure that we can analyze variances understand burn rates and make better forecasts for future work

bull Meaningful accurate and practical actual cost collection can still be used as a gauge for the level to establish control accountsmdasheven if that level is higher or different from how EV might structure control accounts

bull Both EV and Agile need to know and act on variances to planbull Both EV and Agile need to dial in past performance into forecasts for realistic Estimates-

to-Complete and Estimates at Completion (ETCsEACs)bull Both EV and Agile need to manage risks and opportunities dialing them into the plan

forecast as needed with risk mitigation and opportunity capture plans

AGILE TERMINOLOGYHoward Zillman Northrup Grumman

1 FeatureEpicUser Story ndash based on the information from the internet and in discussions with some of the AGILE users I know these terms are used interchangeably and represent a requirement (scope) that needs to be accomplished They are things that can be estimated tested tracked and measured These terms are the equivalent to Work Packages or Planning Packages A User Story may also be a subset of a Feature or EPIC The User Story is scope that can be delivered inside one Sprint User Stories together may form larger systems (Features EPICs)

2 Story ndash A Story seems to be synonymous to a User Story in AGILE Stories are sometimes utilized as inch stones or Quantifiable Backup Data (QBD) for EVM tracking

3 Story Points ndash AGILE describes Story Points as the scale of effort required to implement a User Story I equate it to the budget (BCWS) associated with the effort defined by the FeatureEpicUser Story Story Points relate to scale or complexity of a User Story ndash they can be used to allocate budget to a User Story (but might be team dependent) Story Points can also be the basis for BCWP Complete

4 IterationSprint ndash In AGILE terms these are defined as a Period of Performance (PoP) It typically spans 1-4 weeks

5 Spiral - In AGILE terms this is defined as a Period of Performance (PoP) We define that time span as approximately 3 months This would imply that an IterationSprint is a subset of the Spiral sometimes referred to as a Release A Release or Spiral represents a body of scope with a lsquoformalrsquo delivery at the end Due to the possible confusion with Spiral Development it may make more sense to use the term Release instead of Spiral

6 Velocity ndash In AGILE velocity represents how much work a team can accomplish within an IterationSprint Irsquom not sure there is an EVM equivalent Velocity can be utilized to forecast schedule or ETC (estimate to complete) by comparing achieved team velocity to the remaining backlog in the work package or control account (Ed The EVM term SPI Schedule Performance Index may be analogous to velocity as it measures the amount of work completed versus planned BCWPBCWS for example 400 staff-hours of work completed in 300 staff-hours SPI = 400300 = 133 This value can be used to forecast how long it may take to complete remaining work)

7 BacklogProduct Backlog ndash In AGILE this represents work still to be done It is typically a collection of User Stories (see above) that the team will work at some point in the future based on some priority This looks like the EVM equivalent to a Control Account Backlog is

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

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spon

sibl

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end

orse

the

agile

and

EV

proc

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sist

on

thei

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by e

xem

plar

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mitm

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roce

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Prog

ram

Man

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Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

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rgan

izin

g P

lann

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and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

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EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

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see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 13: The AGILE Issue - Agile and EVM - Measurable News 1-2015

14 The Measurable News 201501 | mycpmorg

1) US Public Law 111-84 The National Defense Authorization Act for Fiscal Year 2010 Section 804

the scope of work to be done ndash tasks in the schedule the scope of a work package or control account Remaining backlog is the uncompleted work If backlog is the scope of the control account (BAC) then the remaining backlog is the scope of work yet to be done (BCWR)

8 Burnup Chart ndash This represents the number of Stories that have been completed within the current Sprint It could be thought of as completed milestone tracking the basis for BCWP Complete

9 Burn-down Chart ndash This displays where the team stands regarding the completion of the taskStories in the current Sprint It could be thought of as missed milestone tracking

10 Sprint Backlog ndash This represents a list of Stories or tasks that were pulled from the BacklogProduct Backlog for inclusion in the next Sprint cycle

EARNING VALUE THE AGILE WAY USING STORY POINTS TO GENERATE EV METRICSEric Christoph PMP EVP L-3 Communications STRATIS

Project managers who want or need to provide Earned Value (EV) metric data on their agile development project must determine how to generate earned value without incurring the planning and execution overhead typical of Earned Value Management (EVM) and which Agile was created to avoid In order to do this managers need to find common ground between the two methodologies and understand the strengths and weaknesses of each This paper discusses the difference between the EVM and Agile approaches and describes a method for generating EV metrics on an Agile project without sacrificing the advantages of Agile

Since the publication of the Agile Manifesto in 2001 Agile has become an accepted and in some cases required approach within the IT industry inspiring many ldquoAgilistasrdquo to question existing project management best practice as defined by organizations such as the Project Management Institute (PMI) and the US Federal Government In response PMI has recently developed the PMI Agile Certified Practitioner certification and the US Congress passed a law1 that directs the Secretary of Defense to develop a new acquisition process for IT systems Some project managers in the federal space are even seeing contract requirements to use both approaches on the same project

EARNED VALUE MANAGEMENT VS AGILEIn the IT arena EVM and Agile are competing management approaches The majority of EVM and Agile practitioners are familiar with only one or the other of these approaches as the two are not often seen as natural complements In addition there are widespread misconceptions about both approaches and plenty of examples where each has been abused misused or otherwise made a scapegoat for poor management or engineering practice Before discussing how to generate EV metrics for an Agile project it will be useful for many readers to review and compare the two in terms of how they support the management of the project

EARNED VALUE MANAGEMENT 101Earned Value Management (EVM) is an approach that compares the cost and time that was planned for completing a project with the cost and time actually spent The key assumption in the approach is that the project manager is able to define what it means to be ldquocompleterdquo Defining project completion starts with the creation of a work breakdown structure (WBS) as shown in Figure 1

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

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agi

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Agile

24 The Measurable News 201501 | mycpmorg

Role

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EV

D

escr

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nPr

oces

sCo

mm

on To

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klog

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elop

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oduc

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klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

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on To

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Poin

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pons

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rter

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spon

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anag

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chni

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erfo

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26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 14: The AGILE Issue - Agile and EVM - Measurable News 1-2015

15The Measurable News 201501 | mycpmorg

2) httpwwwagilemanifestoorghistoryhtml

11

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

Automated Information System

Prime Mission Product Release 1n

Custom Application Software 1n

Enterprise Service Element 1n

Enterprise Information System

1n

External System Interface

Development 1n

System Level Integration

Program Management

System Test and Evaluation

Development Test and Evaluation

Operational Test and Evaluation

Mock-upsSI Labs

Test and Evaluation Support

Test Facilities

Training

Equipment

Services

Facilities

Data

Technical Publications

Engineering Data

Management Data

Support Data

Data Depository

Peculiar Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Common Support Equipment

Test and Measurement

Equipment

Support and Handling Equipment

Figure 1 Partial Work Breakdown Structure for a Military IT System

The WBS is used to organize the scope of the work Once the work is organized each element is analyzed and a cost and schedule estimate is developed to support a time-phased plan called the performance measurement baseline (PMB) Value is ldquoearnedrdquo during project execution when scope is completed At any given point in time the variances between the costs incurred the amount that had been planned to be spent and the value of scope completed (earned value) are calculated and used to forecast the project completion cost and time Figure 2 below shows an EVM performance chart with plan actual costs earned value and various forecasts

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

THE AGILE ALTERNATIVEAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

e to

end

orse

the

agile

and

EV

proc

esse

s an

d in

sist

on

thei

r bus

ines

s ap

plic

atio

n L

ead

by e

xem

plar

ded

icat

ion

and

com

mitm

ent t

o ea

ch p

roce

ss

Prog

ram

Man

ager

Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

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po

nsib

iliti

es

http

w

ww

pin

nacl

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agem

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com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

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se-f

or-

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m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 15: The AGILE Issue - Agile and EVM - Measurable News 1-2015

16 The Measurable News 201501 | mycpmorg

12

Figure 2 EVM Performance Chart

In EVM all value is determined by the plan which makes scope definition and control absolutely critical to realizing the benefits of the approach If you can adequately define and manage scope then you have the ability to identify performance variances early take corrective action and accurately forecast project completion Used correctly EVM supports extremely efficient and effective completion of all types of projects

The Agile AlternativeAgile development is in many ways a response to poor management whether that is project engineering or corporate A review of the history of the establishment of Agile finds references to ldquoDilbertesquerdquo organizations and the need for ldquofreedom from the inanities of corporate life2rdquo The Manifesto for Agile Software Development reads in its entirety as follows

2 httpwwwagilemanifestoorghistoryhtml

We are uncovering better ways of developing software by doing it and helping others do it Through this work we have come to valuebull Individuals and interactions over processes and tools bull Working software over comprehensive documentation bull Customer collaboration over contract negotiation bull Responding to change over following a plan That is while there is value in the items on the right we value the items on the left more

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determined by the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

13

Scrum XP Test Driven Development or Feature Driven Development These approaches feature the use of integrated teams of developers and product owners a product backlog and iterations or sprints of varying lengths Agile methods with extremely short or highly variable length sprints are generally less suitable for adapting earned value techniques Fixed phase Agile approaches such as Scrum and Feature-Driven Development are easier because the sprint can be tuned to coordinate with required reporting cycles

Agile methods break tasks into small increments focused on the development of specific features with the minimum necessary planning Using Scrum terminology the Product Backlog is the full set of requirements or user stories that could be potentially selected in future sprints The Sprint backlog represents the defined set of requirements andor deliverables that will be met for a specific iteration which should be those items in the Product Backlog that are highest in business value as determinedby the product owner It is important to note that the items in the Product Backlog are allowed and even encouraged to change but that the Sprint backlog should be fixed once a Sprint starts Sprints last for short fixed time frames that typically last from two to four weeks Each sprint involves a team working through a full software development cycle including planning requirements analysis design coding unit testing and acceptance testing when a working product is demonstrated to stakeholders This minimizes overall risk and allows the project to adapt to changes quickly

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

Figure 3 Agile Scrum Process

Velocity is the Agile measure of productivity Velocity is the sum of the estimates of delivered and accepted features per iteration and is measured in the same units as feature estimates whether this is story points requirements or any other suitable unit

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 4 Velocity Chart

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

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LES

An

dre

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t L

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Role

Agile

EV

D

escr

iptio

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mm

on To

uch

Poin

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Exec

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and

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Prog

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Man

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aditi

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spon

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lity

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nd a

utho

rity

to

acco

mpl

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ectiv

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r pla

nnin

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udge

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acq

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risk

and

m

anag

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t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

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NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

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reas

on

a sm

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e PM

cou

ld a

lso

be th

e SC

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aste

r)

Agile

pro

ject

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agem

ent o

ften

put

s th

e tr

aditi

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ager

in

a di

fficu

lt po

sitio

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e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

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adeo

ff de

cisi

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know

ing

that

a p

rodu

ct m

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tom

er m

ight

sec

ond-

gues

s th

ose

deci

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the

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ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

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Revi

sion

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Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

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of th

e ba

cklo

g an

d le

t the

EV

chan

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anne

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mpl

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Dep

uty

Prog

ram

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mpa

ny a

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ontr

act s

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may

be

dele

gate

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e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

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emen

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ntro

l acc

ount

AN

SI 7

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rgan

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Chie

f Eng

inee

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rchi

tect

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Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

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chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

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art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

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dire

ctio

n of

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proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

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initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

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ners

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diff

eren

t tha

n tr

aditi

onal

arc

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onsi

ble

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ettin

g th

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chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

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Phone (888) 644-5613

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see our ad on p 42

Planning every step mdash Every step as plannedtrade

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

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EVMLibraryorg The CPM Online Library

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The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

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Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

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see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 16: The AGILE Issue - Agile and EVM - Measurable News 1-2015

17The Measurable News 201501 | mycpmorg

3) Measures other than Velocity are used on Agile projects including measures of customer satisfaction feature delivery etc However Velocity is the closest Agile comes to a productivity measure and is the most comparable with the EV CPI metric

Since Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capability

COMPARISON OF EVM AND AGILEIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

14

Figure 4 Velocity ChartSince Agile typically assumes a fixed time period for each iteration and a fixed team performing the work the Velocity measure provides a very powerful and simple to use forecasting capabilityComparison of EVM and AgileIn terms of the iron triangle EVM tries to keep scope constant (or at least controlled) in order to manage cost and schedule while Agile works exactly opposite

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo

Figure 5 The Iron Triangle in EVM and Agile

The usefulness of the performance metrics that EVM and Agile generate reflects this difference in approach As long as scope is managed EVM metrics provide measures of actual productivity relative to plan that allow the project manager to make informed decisions about resources and the sequence of activities to be performed to bring a project in on time and on schedule Cost and schedule performance indices are only predictive of future results if the scope of the work is well understood having a ldquorubber baselinerdquo negatively affects the usefulness of these metrics and makes forecasting less accurate

For an Agile project as long as the team makeup is relatively constant and the sprint durations are similar then the Velocity measure provides a valuable indicator of how long it might take to ldquoburn downrdquo a given product backlog On the other hand if the duration of sprints and the team makeup are constantly changing during an Agile project then the Velocity measure provides no predictive value3

In terms of which approach is preferable Agile has tremendous advantages over EVM whenever scope is unknown or unpredictable Examples where this situation exists include when stakeholder requirements are not defined or in operations and maintenance for instance when prioritizing defect fixes or feature requests In these cases Agile provides a very lightweight approach to demonstrating value to stakeholders in a frequent iterative manner Agile may also be preferable on smaller projects with skilled teams that understand the goals of the project and the technology very well and where the overhead and expertise required to do detailed planning is neither desired nor required

The weakness of Agile is that it sacrifices overall completion efficiency in order to provide immediate capability Of particular concern on some jobs is that Agile masks this tradeoff because the approach never requires that completion be defined Since all re-work refactoring retrofitting etc is just another product backlog item to be included in a future sprint there is no measure of how much work it took to get any component of a system developed The development of large complicated systems with significant interfaces between components will nearly always benefit from the planning discipline and performance visibility at the component level provided by EVM systems

Why Would I Want EV Data on an Agile ProjectThere are two common situations where a project manager might want to generate EVM metrics for an Agile project When the team makeup and to a lesser extent the sprint durations cannot be held constant such as in a mixed development and operations environment

When EVM is required on a contractEV metrics provide a measure of cost productivity which does not exist in Agile Stated another way CPI measures how much was developed for the money spent while Velocity only measures how much was developed Cost productivity measures allow the project manager to show that he or she is managing stakeholder resources effectively even when problems with resource availability are impacting project feature development In the case where EVM is required by the stakeholder generating EV metrics allows the project manager to meet contract reporting requirements

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

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Proj

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ndash fo

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lann

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how

m

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(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

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e pr

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ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 17: The AGILE Issue - Agile and EVM - Measurable News 1-2015

18 The Measurable News 201501 | mycpmorg

Any approach for generating EV metrics on an Agile project should maintain the simplicity and low process overhead of Agile methods This means concentrating on approaches for getting EV metrics while being willing to forego typical earned value management processes such as scheduling In order to generate EV performance metrics you need three key pieces of data

bull A budget to accomplish a defined portion of the project scope (Planned Value or PV)bull A dollarized measure of accomplishment (Earned Value or EV) and bull The actual costs incurred by the project while completing the work (Actual Costs or AC)

This data is used to develop EV performance metrics such as CPI and SPI

Metric Use

Cost Performance Index (CPI) = EVAC Shows accomplishment relative to actual costs incurred

Schedule Performance Index (SPI) = EVPV Shows accomplishment relative to planned costs budgeted

GENERATING EARNED VALUE USING STORY POINTSGenerating EV data requires that there be some level of the project where work is planned and then accomplishment is measured against that plan In Agile this is the sprint At the beginning of each sprint features or user stories in the product backlog are collaboratively evaluated and prioritized by the Agile team Those features that are determined to provide the highest business value are moved to the sprint backlog where they are evaluated using a set of criteria based upon complexity experience with a similar requirement planned difficulty required expertise or other appropriate factor(s) The result of this evaluation is a list of features to be completed during the sprint each with a number of story points

Date Submitted

Sprint Planned

Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 No 0

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 No 0

30-Nov-10 1 9 Create a new front page for the application 105 No 0

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No 0

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 No 0

13-Oct-10 1 5 Allow the document to be hard copy printed 115 No 0

27-Sep-10 1 7 A record of the e-mail must be kept 105 No 0

27-Sep-10 1 8 A full audit of emails being printed 115 No 0

27-Sep-10 1 9 Ability to conduct content searches 105 No 0

27-Sep-10 1 10 Error message to read Invalid Entry 105 No 0

29-Oct-10 1 11 Auto populate user signature 11 No 0

27-Sep-10 1 11 Enable page numbering on e-mails 115 No 0

Total 13 0

Figure 6 Example Sprint Backlog Feature List with Story Points

So far this is just basic Agile sprint planning (for a more detailed discussion of estimating with story points read Agile Estimating and Planning by Mike Cohn) All that is required in order to generate EV metrics is that the total costs be planned for the sprint and that the total costs for the sprint be divided by the total planned story points to generate a story point value

Sprints Story Points Hours HoursSP $ $SP

Sprint 1 13 58000 4462 $35090 $2699

Sprint 2 16 72000 4500 $43560 $2723

Sprint 3 12 58000 4833 $35090 $2924

188000 $113740

Figure 7 Calculating Story Point Value ($SP)

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

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Role

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Prog

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Man

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aditi

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esig

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spon

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nd a

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rity

to

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r pla

nnin

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udge

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risk

and

m

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mee

t the

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trac

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irem

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and

the

user

rsquos op

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l nee

ds

Mus

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l pro

cess

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d w

ith c

ontr

act e

xecu

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and

chal

leng

e te

am

to fi

nd e

ffici

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ithin

the

requ

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proc

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s (C

MM

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NSI

748

agi

le e

tc)

M

ay b

e ut

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a ldquob

arrie

r bus

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A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

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hich

cou

ld b

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com

plis

hed

via

the

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M m

aste

r rol

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rela

tive

to c

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ontr

act s

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(the

larg

er th

e co

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PM

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ld b

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CRU

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k co

nsen

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reas

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a sm

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e PM

cou

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lso

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e SC

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Agile

pro

ject

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ften

put

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a di

fficu

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is to

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xam

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ifficu

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dist

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aditi

onal

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spon

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hat i

s ag

ile a

bout

this

ne

w p

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any

of th

ese

dutie

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748

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Plan

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ndash fo

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on p

lann

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how

m

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(AKA

ldquoqua

ntity

rdquo) w

ill b

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com

plis

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let t

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gile

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m

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e pr

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of th

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cklo

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Dep

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Prog

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ontr

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may

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re

spon

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erso

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onsi

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for f

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chite

ctur

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ecis

ions

on

a su

b-te

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nd

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art o

f the

arc

hite

ctur

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ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

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ub-t

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thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 18: The AGILE Issue - Agile and EVM - Measurable News 1-2015

19The Measurable News 201501 | mycpmorg

The example in Figure 7 shows hours as well as dollars Dollars tend to be a better indicator of value but if they are not available hours may be used instead As each feature or story point is completed and accepted note that and keep a log showing when that occurred and what the story point value of the item was All completed items should be logged in this manner regardless of whether or not they were in the original sprint backlog

Date Submitted

Sprint Req Requirement Story Points

Completed Earned Value

1-Jan-11 1 25 Streamline the Current e-mail process 1 Yes $ 2699

16-Dec-10 1 16 Allow the user to choose the e-mail format 115 Yes $ 3104

30-Nov-10 1 9 Create a new front page for the application 105 Yes $ 2834

14-Nov-10 1 12 Allow for Selection of sensitivity level for e-mail 1 No $ -

29-Oct-10 1 3 Auto populate all relevant data in the entry form 11 Yes $ 2969

13-Oct-10 1 5 Allow the document to be hard copy printed 115 Yes $ 3104

27-Sep-10 1 7 A record of the e-mail must be kept 105 No $ -

27-Sep-10 1 8 A full audit of emails being printed 115 Yes $ 3104

27-Sep-10 1 9 Ability to conduct content searches 105 Yes $ 2834

27-Sep-10 1 10 Error message to read Invalid Entry 105 Yes $ 2834

29-Oct-10 1 11 Auto populate user signature 11 Yes $ 2969

27-Sep-10 1 11 Enable page numbering on e-mails 115 No $ -

5-Feb-11 1 Interface to existing server 115 No $ -

7-Feb-11 2 User logins from Os 115 No $ -

15-Feb-11 6 Replace underlying Os 115 Yes $ 3104

18-Feb-11 13 Enable workflow 105 Yes $ 2834

Total 175 $ 32388

Figure 8 Capturing Earned Value During a Sprint

As each requirement is completed it ldquoearnsrdquo value according to the story point value determined for the sprint in this case $2699 per story point completed

GENERATING EARNED VALUE METRICSProject performance measurements are now available which can be utilized to track development efficiency (CPI) as well as velocity The following example shows both metrics being tracked across several iterations This information tells the analyst not only what got done but how efficiently it was done and can be used to identify the impact of changing requirements on performance

Sprints Velocity- Plan

$ - PV $SP- Plan

AC Velocity- Actual

EV CPI (EVAC)

SPI (EVPV)

Sprint 1 13 $ 35090 $ 2699 $ 31250 12 $ 32388 104 092

Sprint 2 16 $ 43560 $ 2723 $ 45887 17 $ 46291 101 106

Sprint 3 12 $ 35090 $ 2924 $ 33006 11 $ 32164 097 092

$ 113740 $ 110143 $ 110843 101 097

Figure 9 Sample EV Metrics

It is important to note that EV in this example is based on a story point value that changes at each new iteration but does not change during the iteration In order to hold a constant story point value the entire product backlog would have to be measured against the full planned costs of the project If the product backlog were stable enough for that to be feasible then the project should probably consider using standard EVM and not Agile

IS THIS REALLY EARNED VALUE MANAGEMENTIn a word no Earned Value Management is designed to be used when scope can be held relatively constant and it measures the actual cost of completing work relative to the planned cost to complete that work Agile is designed to be used when scope is in flux

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

e to

end

orse

the

agile

and

EV

proc

esse

s an

d in

sist

on

thei

r bus

ines

s ap

plic

atio

n L

ead

by e

xem

plar

ded

icat

ion

and

com

mitm

ent t

o ea

ch p

roce

ss

Prog

ram

Man

ager

Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

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Get it now

Got your

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

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see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 19: The AGILE Issue - Agile and EVM - Measurable News 1-2015

20 The Measurable News 201501 | mycpmorg

but resources can be held relatively constant EVM attempts to achieve cost and schedule targets through careful planning while Agile attempts to deliver immediate business value through simplified planning and close team communication The two approaches operate under different assumptions and their metrics are designed to work within those constraints

However sometimes the assumptions do not hold When resources get re-prioritized during a project (or even during a sprint) CPI provides a measure of productivity that ldquofloatsrdquo with the available resources Combined with measures to track the amount of churn in the sprint backlog the project now has a very rich data set that can be used to show the impact of changing requirements in a way visible to all stakeholders This in turn will help drive more stable requirements definition and that will help all projects whether they are Agile or EVM

Special thanks to my colleagues Linda Girdner PMP EVP CPA and Brian Thomas PhD PMP CSM for their help in developing the concepts in this paper

LOCKHEED MARTIN GOLD CARD copy LMCO courtesy of LMCO

21

Lockheed Martin Gold Card

copy LMCO courtesy of LMCO

copy 2014 Lockheed Martin Corporation All rights reserved

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

e to

end

orse

the

agile

and

EV

proc

esse

s an

d in

sist

on

thei

r bus

ines

s ap

plic

atio

n L

ead

by e

xem

plar

ded

icat

ion

and

com

mitm

ent t

o ea

ch p

roce

ss

Prog

ram

Man

ager

Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

reas

on

a sm

alle

r con

trac

t th

e PM

cou

ld a

lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

agem

ent o

ften

put

s th

e tr

aditi

onal

pro

ject

man

ager

in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

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Phone (888) 644-5613

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EVMLibraryorg The CPM Online Library

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The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

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THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 20: The AGILE Issue - Agile and EVM - Measurable News 1-2015

21The Measurable News 201501 | mycpmorg

22

Lockheed Martin Gold Card

copy 2014 Lockheed Martin Corporation All rights reserved

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

e to

end

orse

the

agile

and

EV

proc

esse

s an

d in

sist

on

thei

r bus

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s ap

plic

atio

n L

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by e

xem

plar

ded

icat

ion

and

com

mitm

ent t

o ea

ch p

roce

ss

Prog

ram

Man

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Xx

The

indi

vidu

al tr

aditi

onal

ly d

esig

nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

g b

udge

ting

acq

uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

es w

ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

M te

am c

oord

inat

or a

nd m

anag

e ris

k co

nsen

sus

whe

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on

a sm

alle

r con

trac

t th

e PM

cou

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lso

be th

e SC

RUM

M

aste

r)

Agile

pro

ject

man

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ften

put

s th

e tr

aditi

onal

pro

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in

a di

fficu

lt po

sitio

n H

e or

she

is to

ld f

or e

xam

ple

to m

ake

scop

esc

hedu

le tr

adeo

ff de

cisi

ons

know

ing

that

a p

rodu

ct m

anag

er o

r cus

tom

er m

ight

sec

ond-

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s th

ose

deci

sion

s if

the

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oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

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sitio

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dist

ribut

es th

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aditi

onal

pro

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man

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spon

sibi

litie

s W

hat i

s ag

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bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

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t and

day

-to-

day

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ert b

ack

to th

e te

am w

here

they

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tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

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NSI

748

O

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and

Budg

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Acco

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Revi

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Plan

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cus

on p

lann

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how

m

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(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

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m

anag

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e pr

iorit

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of th

e ba

cklo

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EV

chan

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roce

ss

man

age

how

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elin

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anne

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be

acco

mpl

ishe

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Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

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nd c

ontr

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ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

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xten

ds o

nly

to th

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oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

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an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

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urce

s (w

ithin

thei

r aut

horiz

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ente

d vi

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oriz

atio

n)

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ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

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am (C

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M) t

o de

velo

p s

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d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

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AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

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Spr

int p

lann

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nder

stan

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iorit

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dule

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ed V

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ort t

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asis

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stim

ates

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Es)

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ear

ned

valu

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oint

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d m

etric

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uppo

rt th

e EV

team

(CA

Ms

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anal

ysis

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he e

arne

d va

lue

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rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

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prin

t pla

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ns a

nd P

rogr

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er to

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prio

ritiz

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d po

tent

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mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

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y an

d th

e pr

ovis

ions

of t

his

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Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

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atin

g In

tegr

ated

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view

s (IB

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risk

asse

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ents

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port

ing

surv

eilla

nce

activ

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to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

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rts

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syst

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rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

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ww

wp

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gile

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ng W

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ays

agile

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les

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20

120

91

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nsib

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com

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cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

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http

w

ww

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am

ilp

olic

yin

dex

cfm

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IGN

DIA

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SC

Ap

plic

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uid

e M

arch

20

07

Rel

ease

http

w

ww

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e-ag

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are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 21: The AGILE Issue - Agile and EVM - Measurable News 1-2015

22 The Measurable News 201501 | mycpmorg

BASELINE CHANGE CONTROL AND AGILERon Terbush Lockheed Martin Corporation Information Systems amp Global Solutions

A common concern voiced by Agile practitioners and Earned Value Management (EVM) experts alike is that since Agile software development content is flexible it is not a good match with the requirements of an Earned Value System that measures completion of defined requirements and requires control of changes to the Performance Measurement Baseline (PMB)

BUT WHAT DOES FLEXIBLE CONTENT REALLY MEANOn some contracts utilizing agile methodology the technical scope is truly flexible The objective is to deliver as much customer prioritized content as possible in a budget and schedule constrained environment On these contracts the customer is purchasing contractor hours vs specific products These contracts do not have defined deliverables and are typically Level of Effort

But many agile development contracts have established goals and objectives and the customer has an expectation that they will get so much ldquobang for the buckrdquo based on what was negotiated Customer established objectives are expected to change over time based on knowledge need and priority and the goal for agile EVM is to accommodate this expected change without impacting the PMB But any change to the PMB which includes technical changes as well as cost and schedule must be controlled in some fashion

To apply Agile methods to these contracts we need a framework or mechanism in the contract to enable flexibility ldquoWhatrdquo is being built must remain flexible in order to best achieve the goals and objectives of the customer but the ldquoquantityrdquo of product is based on what has been negotiated

Both the customer and the contractor need to maintain a good faith relationship when negotiating issues of ldquoquantityrdquo when responding to new knowledge and desired change

ldquoQuantityrdquo isnrsquot SLOC or a number of requirements but does refer to the amount of product created and may include some measure of value Story points are a common work size and complexity estimate used by agile teams across the industry and can be utilized as the measure of size to control baseline change

The development scope of work on an agile program is defined by the program backlog The backlog is made up of system capabilities and functions desired by the customer Those capabilities are broken down into units of work with defined exit criteria called stories The agile team estimates the amount of work needed to complete each story using story points

Using story points as the unit of size the agile team can trade out stories with equal story point value that better satisfies customer goals without changing the ldquoquantityrdquo of content to be delivered This flexibility allows change to the content of a software delivery or release without changing overall ldquoquantityrdquo of work or changing the Performance Measurement Baseline

Increases or decreases to the planned content of a Release will require a baseline change The budget associated with stories (based on story point size) that are removed from or added to the release moves with those stories in keeping with the EVM principle that scope and budget always remain together

Using rolling wave planning and keeping evolving backlog content for downstream releases in planning packages will minimize the amount of baseline change required

23The Measurable News 201501 | mycpmorg

AG

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and

the

user

rsquos op

erat

iona

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ds

Mus

t em

brac

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l pro

cess

es a

ssoc

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d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

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ithin

the

requ

ired

proc

esse

s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

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CRU

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am c

oord

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or a

nd m

anag

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nsen

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reas

on

a sm

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ld a

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be th

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pro

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ften

put

s th

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aditi

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in

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is to

ld f

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ake

scop

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r cus

tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

s if

the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

nd

dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

al

dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

ure

envi

sion

ing

for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

e ow

ners

are

diff

eren

t tha

n tr

aditi

onal

arc

hite

cts

in

that

they

are

not

sol

ely

resp

onsi

ble

for s

ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 22: The AGILE Issue - Agile and EVM - Measurable News 1-2015

23The Measurable News 201501 | mycpmorg

AG

ILE

AN

D E

VM

RO

LES

An

dre

a N

iber

t L

eid

os

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Exec

utiv

e M

anag

emen

tX

xRe

spon

sibl

e to

end

orse

the

agile

and

EV

proc

esse

s an

d in

sist

on

thei

r bus

ines

s ap

plic

atio

n L

ead

by e

xem

plar

ded

icat

ion

and

com

mitm

ent t

o ea

ch p

roce

ss

Prog

ram

Man

ager

Xx

The

indi

vidu

al tr

aditi

onal

ly d

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nate

d w

ith re

spon

sibi

lity

for a

nd a

utho

rity

to

acco

mpl

ish

prog

ram

obj

ectiv

es fo

r pla

nnin

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udge

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uisi

tion

risk

and

m

anag

emen

t to

mee

t the

con

trac

tual

requ

irem

ents

and

the

user

rsquos op

erat

iona

l nee

ds

Mus

t em

brac

e al

l pro

cess

es a

ssoc

iate

d w

ith c

ontr

act e

xecu

tion

and

chal

leng

e te

am

to fi

nd e

ffici

enci

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ithin

the

requ

ired

proc

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s (C

MM

I IS

O A

NSI

748

agi

le e

tc)

M

ay b

e ut

ilize

d as

a ldquob

arrie

r bus

terrdquo

A

lso

may

be

iden

tified

as

Proj

ect M

anag

er o

r Pr

oduc

t Man

ager

In A

gile

the

re m

ay n

ot b

e a

need

for t

he P

M ro

le w

hich

cou

ld b

e ac

com

plis

hed

via

the

SCRU

M m

aste

r rol

e ndash

rela

tive

to c

ompa

ny a

nd c

ontr

act s

ize

(the

larg

er th

e co

ntra

ct a

PM

cou

ld b

e m

ore

of a

cro

ss S

CRU

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am c

oord

inat

or a

nd m

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e ris

k co

nsen

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reas

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a sm

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e PM

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lso

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e SC

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r)

Agile

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agem

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ften

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a di

fficu

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sitio

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e or

she

is to

ld f

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xam

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ake

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know

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that

a p

rodu

ct m

anag

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tom

er m

ight

sec

ond-

gues

s th

ose

deci

sion

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the

proj

ect g

oes

poor

ly

Agile

ack

now

ledg

es th

is d

ifficu

lt po

sitio

n a

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dist

ribut

es th

e tr

aditi

onal

pro

ject

man

ager

s re

spon

sibi

litie

s W

hat i

s ag

ile a

bout

this

ne

w p

arad

igm

is th

at m

any

of th

ese

dutie

s su

ch a

s ta

sk a

ssig

nmen

t and

day

-to-

day

proj

ect d

ecis

ions

rev

ert b

ack

to th

e te

am w

here

they

righ

tful

ly b

elon

g

Agile

Rel

ease

Pla

nnin

g A

NSI

748

O

rgan

izin

g P

lann

ing

and

Budg

etin

g

Acco

untin

g A

naly

sis

Revi

sion

s

Plan

ning

ndash fo

cus

on p

lann

ing

how

m

uch

(AKA

ldquoqua

ntity

rdquo) w

ill b

e ac

com

plis

hed

let t

he a

gile

pro

cess

m

anag

e th

e pr

iorit

izat

ion

of th

e ba

cklo

g an

d le

t the

EV

chan

ge p

roce

ss

man

age

how

muc

h is

bas

elin

e pl

anne

d to

be

acco

mpl

ishe

d

Dep

uty

Prog

ram

M

anag

erx

If ne

eded

bas

ed o

n co

mpa

ny a

nd c

ontr

act s

ize

may

be

dele

gate

d th

e EV

re

spon

sibi

litie

s on

larg

e pr

ogra

ms

Can

act

as

the

CAM

for t

he p

rogr

am m

anag

emen

t co

ntro

l acc

ount

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Chie

f Eng

inee

r (A

rchi

tect

ure

Ow

ner)

XTh

is p

erso

n is

resp

onsi

ble

for f

acili

tatin

g ar

chite

ctur

al d

ecis

ions

on

a su

b-te

am a

nd

is p

art o

f the

arc

hite

ctur

e ow

ner t

eam

whi

ch is

resp

onsi

ble

for o

vera

ll ar

chite

ctur

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dire

ctio

n of

the

proj

ect

The

arch

itect

ure

owne

r lea

ds th

eir s

ub-t

eam

thro

ugh

initi

al

arch

itect

ure

envi

sion

ing

for t

heir

sub-

syst

ems

and

will

be

invo

lved

with

the

initi

al

arch

itect

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sion

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for t

he s

yste

m a

s a

who

le (a

s pa

rt o

f the

arc

hite

ctur

e ow

ner

team

see

bel

ow)

Arc

hite

ctur

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ners

are

diff

eren

t tha

n tr

aditi

onal

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they

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sol

ely

resp

onsi

ble

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ettin

g th

e ar

chite

ctur

al d

irect

ion

but i

nste

ad

faci

litat

e its

cre

atio

n an

d ev

olut

ion

Agile

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

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Mas

ter

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litat

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mpi

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Scr

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the

team

w

ill fo

llow

Au

thor

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xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

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an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

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EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

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see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 23: The AGILE Issue - Agile and EVM - Measurable News 1-2015

24 The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Team

Lea

d S

CRU

M

Mas

ter

xA

faci

litat

or c

oach

and

cha

mpi

on o

f the

Scr

um fr

amew

ork

and

proc

ess

that

the

team

w

ill fo

llow

Au

thor

ity e

xten

ds o

nly

to th

e pr

oces

s an

d its

rsquo use

to g

et a

SCR

UM

team

to

perf

orm

Re

spon

sibl

e fo

r del

iver

ing

a pr

oduc

t ho

wev

er n

ot v

iew

ed a

s re

spon

sibl

e to

cre

dit (

or b

lam

e) fo

r the

suc

cess

(or f

ailu

re) o

f the

pro

ject

D

econ

flict

prio

ritie

s fo

r te

am

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

D

oes

not h

ave

man

y of

the

trad

ition

al P

M re

spon

sibi

litie

s of

sco

pe c

ost

pers

onne

l an

d ris

k m

anag

emen

t

Agile

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e SC

RUM

Mas

ter c

ould

be

the

PM

SCRU

M Te

amX

Resp

onsi

ble

for c

omm

ittin

g to

a S

prin

t goa

l and

pro

mis

ing

to d

eliv

er it

with

in th

e tim

e bo

xed

Sprin

t T

he Te

am is

sel

f-man

agin

g an

d se

lf-or

gani

zed

The

Team

wor

ks

with

the

Prod

uct M

anag

er to

det

erm

ine

wha

t ite

ms

from

the

Prod

uct B

ackl

og th

ey

can

deliv

er in

a S

prin

t T

hey

Team

dec

ompo

ses

the

Prod

uct B

ackl

og in

to a

ser

ies

of

activ

ities

that

mus

t be

acco

mpl

ishe

d as

par

t of t

he S

prin

t S

ince

the

Team

com

mits

to

the

Sprin

t th

ey m

ust e

nsur

e th

at th

ey c

an d

eliv

er o

n w

hat t

hey

prom

ised

Sp

rints

ca

nnot

be

exte

nded

or d

elay

ed

So th

e Te

am w

ield

s gr

eat p

ower

but

the

Team

is

also

hel

d ac

coun

tabl

e fo

r del

iver

ing

on th

eir c

omm

itmen

t

On

larg

e te

ams

man

y fu

nctio

nal a

reas

sho

uld

be re

pres

ente

d ndash

deve

lope

r te

ster

dat

a ba

se i

nteg

rato

r et

c

Agile

spr

int p

lann

ing

and

sprin

t co

mpl

etio

nCa

n lo

ok v

ery

sim

ilar t

o an

OBS

and

re

pres

entin

g m

ultip

le fu

nctio

nal a

reas

Prod

uct O

wne

rx

xRe

spon

sibl

e fo

r del

iver

ing

prod

uct v

alue

(cor

rect

pro

duct

in c

orre

ct o

rder

) and

re

pres

ents

the

stak

ehol

der

The

pro

duct

ow

ner m

ust b

e av

aila

ble

to th

e te

am T

his

mea

ns w

orki

ng w

ith th

e St

akeh

olde

rs to

und

erst

and

thei

r nee

ds a

nd d

evel

opin

g a

Visi

on a

nd a

Pro

duct

Bac

klog

that

aim

s to

ach

ieve

the

Visi

on T

his

role

mig

ht b

e th

e cl

oses

t rol

e to

a c

lass

ic P

roje

ct M

anag

er ro

le

How

ever

the

re a

re s

till s

igni

fican

t di

ffere

nces

Fo

r exa

mpl

e th

e Pr

oduc

t Ow

ner d

oes

not c

ontr

ol w

hat t

he Te

am

com

mits

to c

ompl

etin

g T

he P

rodu

ct O

wne

r prio

ritiz

es th

e lis

t of i

tem

s on

the

Prod

uct B

ackl

og in

seq

uent

ial o

rder

(fro

m 1

to n

) in

clud

ing

scop

e an

d sc

hedu

le

trad

eoff

But

the

Prod

uct O

wne

r can

not f

orce

the

Team

to c

omm

it to

del

iver

ing

beyo

nd w

hat t

he Te

am fe

els

com

fort

able

Thr

ough

any

repr

iorit

izat

ion

durin

g re

leas

e pl

anni

ng m

ay im

pact

the

EV c

hang

e pr

oces

s R

eprio

ritiz

atio

n im

plie

s di

rect

ion

to

cont

ract

or te

am to

imm

edia

tely

upd

ate

the

base

line

plan

if n

eces

sary

reg

ardl

ess

of

any

pote

ntia

l EV

free

ze h

oriz

on

Agile

pla

nnin

g A

NSI

748

Pla

nnin

g amp

Bu

dget

ing

and

Revi

sion

sW

ith P

rogr

am M

anag

er in

set

ting

expe

ctat

ions

for p

roje

ct

Stak

ehol

der

XA

nyon

e w

ho h

as a

n in

tere

st o

r sta

ke in

the

proj

ect

Res

pons

ible

for c

omm

unic

atin

g th

eir n

eeds

and

pro

vidi

ng fe

edba

ck o

n th

e pr

oduc

t W

ork

with

the

Prod

uct O

wne

r to

dev

elop

and

mai

ntai

n th

e Pr

oduc

t Bac

klog

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

r sch

edul

e (IM

S)

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

ing

sess

ions

to u

nder

stan

d pr

iorit

izat

ion

of

sche

dule

task

s

Earn

ed V

alue

Ana

lyst

Pl

anni

ng C

oord

inat

orx

Supp

ort t

he E

V te

am (C

AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

ing

advi

ce e

nsur

ing

effec

tive

EVM

im

plem

enta

tion

on n

ew c

ontr

acts

ana

lysi

s of

con

trac

tor p

erfo

rman

ce re

port

s fa

cilit

atin

g In

tegr

ated

Bas

elin

e Re

view

s (IB

Rs)

risk

asse

ssm

ents

sup

port

ing

surv

eilla

nce

activ

ities

to a

sses

s th

e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

-ro

les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

nacl

eman

agem

ent

com

co

ntro

l-ac

coun

t-m

anag

ers-

cam

s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

http

w

ww

dcm

am

ilp

olic

yin

dex

cfm

- E

VM

IGN

DIA

PM

SC

Ap

plic

atio

n G

uid

e M

arch

20

07

Rel

ease

http

w

ww

ag

ilep

gm

co

m2

012

01

wha

t-is

-the

-ro

le-i

n-th

e-ag

ile-e

nter

pri

se-f

or-

the-

pro

gra

m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 24: The AGILE Issue - Agile and EVM - Measurable News 1-2015

25The Measurable News 201501 | mycpmorg

Role

Agile

EV

D

escr

iptio

nPr

oces

sCo

mm

on To

uch

Poin

ts

Cont

rol A

ccou

nt

Man

ager

(CA

M)

xRe

spon

sibl

e fo

r the

pla

nnin

g c

oord

inat

ion

and

achi

evem

ent o

f all

wor

k w

ithin

a

Cont

rol A

ccou

nt a

nd p

rovi

des

a si

ngle

aut

horit

y fo

r all

scop

e te

chni

cal a

nd c

ost

issu

es fo

r the

CA

ndash n

ot a

n ea

sy ta

sk A

ttrib

utes

that

a C

AM

mus

t hav

e ar

e di

vide

d in

to th

ree

umbr

ella

cat

egor

ies

Res

pons

ibili

ty A

utho

rity

and

Acco

unta

bilit

y W

ithou

t th

ese

thre

e cr

itica

l att

ribut

es a

CA

M w

ill n

ot b

e ab

le to

per

form

effe

ctiv

ely

and

will

sim

ply

beco

me

an e

mbe

dded

repo

rter

in th

e Pr

ogra

m

A C

AM

mus

t be

give

n fu

ll re

spon

sibi

lity

for m

anag

ing

the

cost

sch

edul

e an

d te

chni

cal p

erfo

rman

ce o

f th

e Co

ntro

l Acc

ount

and

for s

uppo

rtin

g al

l cus

tom

er m

eetin

gs a

nd d

ata

requ

ests

pe

rtai

ning

to th

e Co

ntro

l Acc

ount

To

be e

ffect

ive

the

CAM

mus

t hav

e ow

ners

hip

of th

e bu

dget

and

full

auth

ority

to d

irect

reso

urce

s (w

ithin

thei

r aut

horiz

ed s

cope

do

cum

ente

d vi

a w

ork

auth

oriz

atio

n)

Isol

ate

inte

rfer

ence

from

ldquoman

agem

entrdquo

to s

tay

focu

sed

on te

chni

cal g

oals

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Dep

endi

ng o

n th

e co

mpa

ny a

nd

cont

ract

siz

e th

e CA

M c

ould

be

the

SCRU

M M

aste

r

Sche

dule

rx

Supp

ort t

he E

V te

am (C

AM

s P

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o de

velo

p s

tatu

s an

d an

alyz

e th

e pr

ogra

ms

inte

grat

ed m

aste

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e (IM

S)

AN

SI 7

48 O

rgan

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g P

lann

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and

Budg

etin

gSu

ppor

t Rel

ease

and

Spr

int p

lann

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sess

ions

to u

nder

stan

d pr

iorit

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ion

of

sche

dule

task

s

Earn

ed V

alue

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lyst

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ng C

oord

inat

orx

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ort t

he E

V te

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AM

s P

M) t

o co

nver

t the

IMS

or b

asis

of e

stim

ates

(BO

Es)

into

ear

ned

valu

e da

ta p

oint

s an

d m

etric

s S

uppo

rt th

e EV

team

(CA

Ms

PM

) in

the

anal

ysis

of t

he e

arne

d va

lue

repo

rts

AN

SI 7

48 O

rgan

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g P

lann

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and

Budg

etin

g A

ccou

ntin

g A

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Revi

sion

s

Supp

ort R

elea

se a

nd S

prin

t pla

nnin

g se

ssio

ns a

nd P

rogr

am M

anag

er to

an

alyz

e an

y ch

ange

s in

prio

ritiz

atio

n an

d po

tent

ial i

mpa

ct to

PM

B

EV F

ocal

Poi

ntx

Resp

onsi

ble

for e

ffect

ive

polic

y im

plem

enta

tion

with

in th

eir c

ompo

nent

ens

urin

g co

nsis

tenc

y w

ith D

oD p

olic

y an

d th

e pr

ovis

ions

of t

his

guid

e

Resp

onsi

ble

for

dis

sem

inat

ing

curr

ent p

olic

y an

d pr

ovid

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advi

ce e

nsur

ing

effec

tive

EVM

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plem

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tion

on n

ew c

ontr

acts

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lysi

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con

trac

tor p

erfo

rman

ce re

port

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cilit

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asse

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port

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surv

eilla

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ities

to a

sses

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e EV

MS

man

agem

ent p

roce

sses

and

the

repo

rts

the

syst

em p

rodu

ces

EVM

SD

AN

SI 7

48 O

rgan

izin

g P

lann

ing

and

Budg

etin

g A

ccou

ntin

g A

naly

sis

Revi

sion

s

Supp

ort E

V an

d Ag

ile te

ams

to e

nsur

e th

at a

ppro

pria

te Q

BD a

nd e

arne

d va

lue

(BCW

P) is

com

plia

nt a

nd re

pres

enta

tive

of p

rogr

ess

So

urce

sht

tp

ww

wp

mro

ico

ma

gile

-ear

ned

-val

ue

Su-

Che

ng W

uht

tp

ww

wa

mb

yso

ftc

om

ess

ays

agile

Ro

les

htm

l ht

tp

ww

wp

md

ocu

men

tsc

om

20

120

91

5ag

ile-s

crum

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les-

and

-res

po

nsib

iliti

es

http

w

ww

pin

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agem

ent

com

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ntro

l-ac

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ers-

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s-ro

le-a

nd-r

esp

ons

ibili

ties

34

0

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w

ww

dcm

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olic

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IGN

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e M

arch

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07

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ease

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ww

ag

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012

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le-i

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e-ag

ile-e

nter

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se-f

or-

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pro

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m-m

anag

er-o

r-p

mo

htm

l ht

tp

ww

wm

oun

tain

go

atso

ftw

are

com

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 25: The AGILE Issue - Agile and EVM - Measurable News 1-2015

26 The Measurable News 201501 | mycpmorg

4) ldquoEarned Value for Agile Developmentrdquo John Rusk SoftwareTECH News April 2009 Vol 12 Number 1

CONNECTING EVM WITH AGILEMultiple Authors

INTRODUCTIONSeveral concepts needed to be established before proceeding

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

bull When the Agile community says VALUE it means Business VALUE not EARNED VALUEbull The details of ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

bull A second document 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

PRINCIPLESBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

30

Connecting EVM with AgileMultiple Authors

IntroductionSeveral 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 ANSIEIAndash748 are shown here In order to incorporate agile development

practices with Earned Value Management it is critical to understand the intent of ANSIEIAndash748

A second document 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

PrinciplesBefore any of the current ldquoagilerdquo development methods Earned Value Management provided information for planning and controlling complex projects by measuring how much ldquovaluerdquo 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 ldquoyesterdayrsquos weatherrdquo metrics Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements ndash budgeted cost for work scheduled actual cost of work performed and budgeted cost of work performed (earned value) Before proceeding letrsquos look at some top level similarities between Earned Value Management and Agile Development

The Agile ParadigmThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As

Earned Value Agile Development A Big Picture View of the Projectrsquos performance

Continuous production of useable software

Accurate Estimate at Completion built from the bottom up performance

Prediction of the next iterationrsquos effort using performance from the last iteration

Endndashtondashend value tracking for deliverables measured as Physical Percent Complete

Iteration to iteration tracking of planned deliverables to the customer

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this document showing how these seemingly conflicting concepts are in fact supportive of each other

Figure 10 ndash Top level concepts of connecting agile development with Earned Value Management start with simple principles of successful project management These connections establish the basis of this

document showing how these seemingly conflicting concepts are in fact supportive of each other

THE AGILE PARADIGMThe project management and product development method used by Agile depend on incremental development and iterative work processes in ways not normally found in standard approaches to project management and product development This is not to say standard approaches are not iterative or incremental It is just that Agile prescribes special approaches to the iterations and increments that will be described below

The first important method for Agile is to provide on short intervals the opportunity to assess a projectrsquos progress Typically these boundaries are measured in weeks rather than months As well all aspects of agile projects participate in these short intervals requirements development testing and deployment

With these short intervals the participants in the project have recurring opportunities to assess the progress of the project in terms of deliverables These deliverables are complete working instances of the product or service They may be partially complete in terms of the entire project but they are 100 complete in terms of their individual capabilitiesAttributes of Agile Projects4

The Period of Performance of the Work Effort is relatively fixed ndash iterationWork is distributed evenly over time ndash the development has a fixed staff levelWork produces linear output ndash the product of the work effort remains relatively constantActual costs are not broken down by task ndash they are accumulated for the iteration

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 26: The AGILE Issue - Agile and EVM - Measurable News 1-2015

27The Measurable News 201501 | mycpmorg

5) Scaling Software Agility ldquoSystems of Systems and the Agile Release Train An Agile White Paperrdquo Dean Leffingwell 2007

AGILE BUSINESS RHYTHMAll successful project management processes have a well-defined rhythm Earned Value processes on government programs follow a monthly rhythm Similar rhythms are used for construction and other Earned Value centric projects These business rhythms focus on measuring performance against plan In Earned Value this performance is the Budgeted Cost for Work Performed (BCWP) or Earned Value (EV)

For agile projects measures of performance take place through periodic releases of working products The intervals of these releases are measured in weeks usually not more than 4 to 6 weeks

To address the challenges of planning and scheduling the agile enterprise must create a fixed set of rules that are imposed upon all the teams and then leave the teams to figure out how to accomplish the mission For the agile release train these principles include5

bull Frequent periodic release dates for the system platform or solution are fixed and inviolate and known to all team members

ndash Similar to planned durations of Work Packages ndash Most Earned Value systems limit the duration of work before measures of

completionbull Certain intermediate global integration milestones are established and enforced

ndash Milestones and measures of physical percent complete are part of all Earned Value implementations

ndash Work Packages or Tasks have defined outcomes that can be measures of progressbull Continuous system integration is practiced at the top system level as well as at the

component level ndash Most Earned Value based programs rely on systems engineering processes ndash Measures of progress are usually 0 or 100 at the Task level

bull Constraining teams to the dates means that functionality for the components must be flexible

ndash Many programs using Earned Value have fixed delivery dates ndash Many have fixed budgets or ldquonot to exceedrdquo budget

A QUICK SURVEY OF SOME AGILE PARADIGMSThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

AGILE PARADIGMSTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 27: The AGILE Issue - Agile and EVM - Measurable News 1-2015

28 The Measurable News 201501 | mycpmorg

32

A Quick Survey of Some Agile ParadigmsThere are many sets of principles for agile development and agile project management In this document there are 3 sets of principles that will be the basis for connecting the 32 guidelines of Earned Value Management as described in ANSIEIAndash748

Agile ParadigmsTwo Agile approaches (Agile Manifesto and 12 Agile Principles) focus on a smaller set of principles that are also found in the application of Earned Value ndash the focus on identifying and measuring the creation of ldquovaluerdquo for the customer

While these three are representative of agile they are not the complete list of agile processes For now though they will be used to develop the connections to Earned Value Management

12 Principles of Agile EVM principles Our highest priority is to satisfy the customer through early and continuous delivery of value

Select design with the best value impacts for the costs and do them first Control projects by quantified critical few results

Welcome changing requirements even late in development Agile processes harness change for the customers competitive advantage

Change design base on quantified value and cost experience of implementation Change design requirements based on quantified value and cost experience

Deliver working software frequently from a couple of weeks to a couple of months with a preference to the shorter timescale

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Business people and developers must work together daily throughout the project

Involve stakeholder every week in setting quantified value goals

Build projects around motivated individuals Give them the environment and support they need and trust them to get the job done

Given developer freedom to find out how to deliver those results

The most efficient and effective method of conveying information to and within a development team is facendashtondashface conversation

Involve stakeholder every week in actually using value in increments

Working software is the primary measure of progress

Make sure those results are business results Involve stakeholder every week in actually using value in increments

Agile processes promote sustainable development The sponsors developers and users should be able to maintain a constant pace indefinitely

Decompose workflow into weekly time boxes or 2 of the total budgeted time

Continuous attention to technical excellence and good design enhances agility

Select design with the best value impacts for the costs and do them first

Simplicity ndash the art of maximizing the amount of work not done ndash is essential

Estimate the impacts of designs on the quantified goals

The best architectures requirements and designs merge from selfndashorganizing teams

At regular intervals the team reflects on how to become more effective then tunes and adjusts its behavior accordingly

A QUICK LOOK AT CONNECTING EARNED VALUE WITH AGILEAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractorrsquos task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems

With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each and ask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11 describes these 11 guidelines

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles

of Agile development in this document

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

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Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

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wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

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EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 28: The AGILE Issue - Agile and EVM - Measurable News 1-2015

29The Measurable News 201501 | mycpmorg

6) American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

33

A Quick Look at Connecting Earned Value with AgileAn earned value management system is not a reporting system contract administration cost analysis accounting or a contractors task management system It is a measure of the value of physical progress in a project and as such adds additional effort to the work of managing a project Beyond the additional effort of an EVMS care must be taken to avoid hindering the project teamrsquos ability to use its organic management systems With the Earned Value and Agile methods now outlined letrsquos look at the similarities of each andask why canrsquot Agile methods be used in an EVMS environment The 32 guidelines of ANSIEIAndash748 define a fully compliant Earned Value Management System (EVMS) There are 11 guidelines that are the basis of project success Figure 11describes these 11 guidelines

Figure 11 ndash the 11 of the 32 guidelines for successful agile project development as defined in ANSIEIAndash748 These 11 guidelines define the project management processes and are connected to the principles of Agile development in this document

EVM Criteria Agile Approach

1 Define WBS Features and Stories define tasks

2 Identify Organization Self-organizing teams

5 Integrate WBS and OBS Self-organized teams with a customer

6 Schedule Work Iterations and Releases

7 Identify Products amp Milestones

Working software at the end of iterations

8 Set time phased budget Fixed length iterations and releases

16 Record direct costs Fixed staff = Level of Effort

23 Determine variances Velocity measures missed features

25 Sum data and variance Missed features moved to next iteration

26 Manage action plans Replan missed features adjust velocity

28 Incorporate changes Replan missed features adjust velocity

32 GUIDELINES OF EARNED VALUE MANAGEMENTThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelines for an Earned Value Management System defined in ANSIEIAndash7486 The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

ANSIEIAndash748rsquos stated purpose is

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agile development principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives3 Integrate program work scope schedule and cost objectives into a performance

measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate at

completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 29: The AGILE Issue - Agile and EVM - Measurable News 1-2015

30 The Measurable News 201501 | mycpmorg

34

32 Guidelines of Earned Value ManagementThe PMI Earned Value Management Practice Guide does not explicitly call out the 32 guidelinesfor an Earned Value Management System defined in ANSIEIAndash748 [6

ANSIEIAndash748rsquos stated purpose is

] The next section provides an overview of ANSIEIAndash748 and the National Defense Industrial Association Earned Value Management Intent Guide

A GUIDE FOR ESTABLISHMENT AND APPLICATION OF AN INTEGRATED MANAGEMENT SYSTEM WITH COORDINATION OF WORK SCOPE SCHEDULE AND COST OBJECTIVES AND

APPLICATION OF EARNED VALUE METHODS FOR PROGRAM OR ENTERPRISE PLANNING AND CONTROL

There are seven principles of Earned Value Management that will be connected with the Agiledevelopment principles These are

1 Plan all work scope for the program from inception to completion2 Break down the program work scope into finite pieces that can be assigned to a

responsible person or organization for control of technical schedule and cost objectives

3 Integrate program work scope schedule and cost objectives into a performance measurement baseline plan against which accomplishments may be measured Control changes to the baseline

4 Use actual costs incurred and recorded in accomplishing the work performed5 Objectively assess accomplishments at the work performance level6 Analyze significant variances from the plan forecast impacts and prepare an estimate

at completion based on performance to date and work to be performed7 Use EVMS information in the organizationrsquos management processes

Our first effort is to simplify these concepts to find connections with the Agile principles described in sect2 without disrupting the integrity of Earned Value Management

These are divided into five major categories748ndashB EVMIG

Organization Artifacts for This Criteria

Guide 1 21a

Define WBS Work Breakdown Structure (WBS) WBS Dictionary

Guide 2 EVMIG 21b

ID Organizations Organization Breakdown Structure (OBS) OBS Identification to WBS

Guide 3 EVMIG 21c

Integrate Subsystems

Master intermediate and detail level schedules MRPERP operational schedules

Control Account Plans Performance reports by WBS and OBS

Responsibility Assignment Matrix (RAM) Guide 4 EVMIG 21d

ID Overhead Control

Cost Accounting Standards (Disclosure Statement) Organizational Charts

Accounting Chart of Accounts Guide 5 EVMIG 21e

Integrate WBS amp OBS

Control Accounts Responsibility Assignment Matrix (RAM)

6 American National Standards InstituteElectronic Industries Alliance (1998) Earned value management systems Arlington VA Electronic Industries Alliance (ANSIEIA - 748-98)

36

Planning and Scheduling Artifacts from Planning and Scheduling Schedule Work Integrated network schedules including master intermediate (if any) and

detailed schedules MRP or ERP schedules or planned order reports Control account plans (may be separate plans or detail schedules) Work authorization documents

ID Products Milestones

Integrated schedules including master intermediate (if any) and detailed schedules that identify contract milestones and key events

MRP or ERP production planned order reports Control account plans (may be separate plans or detail schedules)

Set TimendashPhased Budget

Control account plans Summary level planning packages Performance measurement baseline Undistributed budget logs Notification to the customer of an overndashtarget baseline Work authorization document

Significant Cost Elements

Control account plans by element of cost Work authorization documents

Performance measurement baseline Undistributed budget logs Bills of Materials (BOM) Responsibility assignment matrix dollarized) Schedules if resourced Material requirements documentation identifying when the material is

expected to be used Subcontractor schedules Resource plan for resources not contained in the control account plans

Discrete Work Packages

Control account plans divided into work packages and planning packages Control account schedules Control account timendashphased budgets

Sum Work Planning Packages

Control account plan total budget Work package budget Planning package budget

ID LOE Activities Control account plans identify level of effort work packages and budgets

Set Overhead for Organizations

Documented process for managing indirect costs Organizational structure identifying ownership responsibility and authority

levels Indirect cost policies and procedures Chart of accounts Organizational charts Forward pricing forecast (including sales forecast and business base

projections) CAS disclosure statement if applicable Indirect budget and performance reports

ID Management Reserve and Undistributed Budget

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Contract Performance Reports (CPRs) if applicable

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 30: The AGILE Issue - Agile and EVM - Measurable News 1-2015

31The Measurable News 201501 | mycpmorg

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

37

Planning and Scheduling Artifacts from Planning and Scheduling Target Costs and Budgets

Project control logs (management reserve undistributed budget performance measurement baseline and contract budget base) reconciled to project target cost

Contract Performance Reports (CPRs) if applicable Internal report showing the summarization from cost account to the

performance measurement baseline

Accounting Considerations Artifacts for Accounting Considerations Record Direct Costs Reconciliation of project costs with the accounting system

Actual costs are reported at the control account level at a minimum Reconciliation of subcontract reported actual costs to subcontract

paymentsInternal and external performance reports for subcontractors Subcontractor control account plans when utilized

Summarize into Work Breakdown Structure (WBS)

Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Monthly performance report

Summarize into Organizational Breakdown Structure (OBS)

Responsibility assignment matrix Organization charts OBS structure (rollndashup scheme) Contract performance report (format 2 where required)

Record Indirect Costs Cost collection account structure WBScost collection mapping WBS structure (rollndashup scheme) Cost accounting standards disclosure statement

ID Equivalent Lot Costs

Project cost collection structure (MRP) ERP system supports the identification of unit costs equivalent unit costs

or lot costs when needed including differentiation of work in process

Material Accounting Performance reports Control account plans Material system reports

Analysis and Management Reports Artifacts for Analysis and Management Reports Periodic Control Account Sums

Monthly performance report (cost variance schedule variance and variance at completion analysis)

Variance analysis data (root causes impacts at completion and management actions)

Determine Variances Variance analyses (budget based schedule variances and cost variances) Management action plans Updated schedule task completion and costndashatndashcompletion forecasts Project schedules and schedule analysis outputs

Budget Actual Indirects

Indirect cost variance analyses Indirect cost management action plans Indirect cost updated schedule and cost forecasts

Sum Data and Variances

Variance analyses Schedule and cost performance reports

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 31: The AGILE Issue - Agile and EVM - Measurable News 1-2015

32 The Measurable News 201501 | mycpmorg

38

Management action plans Updated schedule and cost forecasts

Manager Action Plans

TondashComplete Performance Index (TCPI) Independent completion estimates Risk management data and similar metrics Management action plans and review briefings Variance analyses

Estimate at Complete (EAC) Revision

Control account plans Documented process for developing EACs including subcontractor EAC

integration Basis of estimates Risk management plans (identification mitigation and opportunities) Operational metrics Earned value metrics Material and subcontractor performance data

Manage Revisions Artifacts from Managing Revisions Incorporate Change Contractual change documents

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Reconcile Budgets Contractual change documents Change control logs (management reserve undistributed budget

performance measurement baseline and contract budget base)

Control Retroactive Change

Change control logs Retroactive change control process including approval

Only Authorized Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

Document Performance Measurement Baseline (PMB) Change

Change control logs (management reserve undistributed budget performance measurement baseline and contract budget base)

Control accountwork packageplanning package plans Master schedules intermediate schedules (if any) and detailed schedules Statement of Work WBS and WBS dictionary Work authorization documents Management reports (contract performance reports or other applicable

management reports)

CONNECTING THE DOTS BETWEEN EARNED VALUE AND AGILE DEVELOPMENTWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 32: The AGILE Issue - Agile and EVM - Measurable News 1-2015

33The Measurable News 201501 | mycpmorg

21 b Identify Program Organizational Structure

39

Connecting the Dots between Earned Value and Agile DevelopmentWith the 11 ANSIEIA-748 guidelines established this section details how Agile development practices can be used to support these guidelines Each subsection here addresses a single ANSEIA-748 guideline by restating the guideline and the Agile practices that support that guideline

Again the purpose of this document describes how Agile development practices can be ldquoaddedrdquo to Earned Value Management programs to improve the probability of success

21 a Define Authorized Work Elements

21 b Identify Program Organizational Structure

21 e Integrate WBS and OBS

40

21 e Integrate WBS and OBS

22 a Schedule the Work22 a Schedule the Work

40

21 e Integrate WBS and OBS

22 a Schedule the Work

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 33: The AGILE Issue - Agile and EVM - Measurable News 1-2015

34 The Measurable News 201501 | mycpmorg

22 b Identify Products and Milestones

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget22 c Set Time Phased Budget

41

22 b Identify Products and Milestones

22 c Set Time Phased Budget

23 a Record Direct Costs

42

23 a Record Direct Costs

24 b Determine Variances

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 34: The AGILE Issue - Agile and EVM - Measurable News 1-2015

35

Sidebar footnotes

The Measurable News 201501 | mycpmorg

24 b Determine Variances

42

23 a Record Direct Costs

24 b Determine Variances

24 d Summarize Variances

43

24 d Summarize Variances

24 e Implement Management Plan24 e Implement Management Plan

43

24 d Summarize Variances

24 e Implement Management Plan

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 35: The AGILE Issue - Agile and EVM - Measurable News 1-2015

36 The Measurable News 201501 | mycpmorg

7) Adapted from Jurgen Appelorsquos Blog ldquo10 Principles of Agile Time Managementrdquo httpwwwnoopnl20080610ndashprinciplesndashofndashagilendashprojectndashtimendashmanagementhtml

25 a Incorporate Changes

44

25 a Incorporate Changes

STEP BY STEP PROCESSES FOR ldquoCONNECTING THE DOTSrdquo7

With the definition of the 11 ANSIEIA-748 guidelines needed for the connections to Agile development here are some steps that should be taken during the planning and execution of a project subject to Earned Value but wanting to implement Agile development

These steps are simply ldquogood project managementrdquo In the context of Earned Value these steps are also compliant with the principles of Earned Value

Define DONE - Define the Accomplishments needed to reach done and the Criteria by which these Accomplishments will be measured Only then define the work effort needed to fulfill the Criteria

Time Boxes - These are fine for some things but the Basis of Estimate for what can be accomplished within the time box still needs to be performed

Donrsquot add slack - Slack needs to be somewhere Itrsquos best to make it explicit in the schedule but before the deliverable This ldquobufferrdquo is best determined using Monte Carlo knowing the probability distributions the work efforts

Defer Decisions - Decisions can be deferred only if there is an understanding of the consequences Maybe Defer Commitments is a better term Decisions must be made all the time Waiting too long for a decision simply delays the project

Discipline - Discipline is the glue that holds the project together

Reduce Cycle Time - Ask ldquohow long am I willing to wait to find out Irsquom late over budget or the product doesnrsquot work as specifiedrdquo Use that time as a guide for the cycle time The cycle time can be too short as well This results in thrashing

Keep the Pipeline Short and Thin - Never confuse effort with results Focus on deliverables

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 36: The AGILE Issue - Agile and EVM - Measurable News 1-2015

37The Measurable News 201501 | mycpmorg

Limit Task Switching - Multitasking beyond two tasks has been shown to reduce effectiveness Donrsquot do it

Prevent Sustained Overtime - If yoursquore using overtime yoursquore not managing the schedule or the deliverables ldquoNo Surprisesrdquo is the goal

Separate Urgent from the Important - Define the value of the deliverables Let that drive urgent versus important

EVM WEB RESOURCES AND LINKSAGILE EVM WEB RESOURCES LINKS URLS

httpenwikipediaorgwikiScrum_(software_development)httpwww SolutionsIQcomhttpwww ScaledAgileframeworkcomhttpwww AgileDocscomhttpalistaircockburnus

BIOGRAPHIES OF CONTRIBUTORSGlen B Alleman - Niwot Ridge LLCGlen B Alleman leads the Program Planning and Controls practice for Niwot Ridge LLC In this position Glen brings his 25 yearsrsquo experience in program management systems engineering software development and general management to bear on problems of performance based program management Mr Allemanrsquos 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 SMampA and several consulting firms before joining Niwot Ridge LLC Mr Allemanrsquos teaching experience includes university level courses in mathematics physics and computer science

Eric Christoph PMP EVP - L-3 Communications STRATISEric Christoph PMP EVP is Vice President for Performance Management at L-3 Communications STRATIS Eric has a keen interest in the design and implementation of program control systems for organizations of all types and is a member of several related industry and government working groups including the PMI Standards Consensus Body and the NDIA Program Management Systems Committee where he serves as L-3 Communications representative and at-large board member Ericrsquos current efforts are focused on developing management information systems for large IT providers that are capable of supporting both project and service management functions He can be reached at ericchristophL-3comcom

Luis C Contreras - AzTech International LLC (goAzTechcom)Mr Contreras is President of AzTech International LLC and has over 20 years of experience implementing Earned Value Management Systems throughout the US Canada and Europe He has worked with both government and industry on both sides of DCMA Compliance Reviews and with contractors on numerous Integrated Baseline Reviews (IBRs) He helps organizations optimize all facets of EVMSndashfrom the proposal stage to baseline development and execution His breadth of expertise includes EVM scheduling ERPMRP and earned value in a manufacturing or production environment Mr Contreras has led AzTechrsquos design team in developing custom applications as well as commercial tools such as Run23 and RunAzTech for MS Project scheduling professionals AutoVAR for advanced variance analysis and AzTech Compliance Expert (ACE) for assessing EVMS compliance prior to Integrated Baseline Reviews (IBRs) Compliance Reviews Reviews for Cause and for independent assessments and self-assessments

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 37: The AGILE Issue - Agile and EVM - Measurable News 1-2015

38 The Measurable News 201501 | mycpmorg

Andrea Nibert - LeidosMs Nibert has over 20-years of DoD government contracting experience as a Program Control and Earned Value Management (EVM) Analyst Professional experience includes Project Controls and Management EVM Systems Financial Analysis and CorporateCost Accounting with a complementary background in the design development and implementation of MIS operations to support critical accounting processes financial tracking functions and invoicing

She has supported all phases of program planning and execution beginning with proposal support through contract closeout Ms Nibertrsquos focus includes the start-up of programs with EVM requirements the implementation of the EVMS processes IBR readiness and training statusing and tracking programs formal reporting (CPR and IPMR) and analyzing program performance In addition she has participated in Joint Surveillance by completing the intent guide for multiple guidelines and supporting the program team during the interview Ms Nibert was a team member demonstrating EVMS compliance earning a corporate Advanced Agreement

Ray W Stratton EVP PMP - Management TechnologiesMr Stratton PMPreg EVPreg is founder and president of Management Technologies an earned value management training and consulting firm He provides his clients EVM training ANSI 748 process engineering third party EVM assessments and application of EVM to their projects and programs He has taught earned value management to US and foreign governments educational institutions and commercial and defense companies He is the author of The Earned Value Management Maturity Modelreg published by Management Concepts and Ray Strattonrsquos Earned Value Professional (EVP) Exam Study Guide Mr Stratton is also the editor of the monthly ldquoThe EVM Newslettertraderdquo

Ray W Stratton has over twenty five yearsrsquo experience as a software program manager with a major aerospace defense firm While there he managed the development of radar communication and command and control systems Mr Stratton retired from the Naval Air Reserve at the rank of Captain He last commanded an Engineering Unit that supported a variety of studies and projects on behalf of the Naval Air Systems Command laboratories and ranges

Ron Terbush - Lockheed Martin ISampGSRon Terbush is a Project Management and Planning Operations Principal for Lockheed Martin Information Systems amp Global Solutions (ISampGS) with 30 years of experience in program finance earned value management planning and scheduling and financial management Ron is a certified EVM subject matter expert for ISampGS and provides program guidance and support for EVM implementation for programs of all sizes and complexity levels Ronrsquos role includes developing and delivering performance management training writing policy facilitating ISampGS performance management process improvement initiatives and support to programs on EVM implementation and execution Ron is co-author of the ISampGS Earned Value Management Guidebook for Agile Programs

Ron is a Lockheed Martin certified EVM professional and LM21 green belt He holds a Bachelor of Science degree in Business Management from Regis University in Denver Colorado

Howard Zillman - Northrop Grumman Electronics SystemsHoward Zillman is the Western Region Manager for Earned Value Management and Program Assessment for Northrop Grumman Electronic Systems Sector Howard has 30 years of experience in both earned value management and program financial control management Howard is responsible for developing and providing EVM training program guidance and all aspects of support related to program EVM implementation and Government EVM audits Howard is recognized as an EVM subject matter expert for NGES Howard holds a Bachelor of Science Degree in both Accounting and Finance from California State University Northridge

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 38: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

39

EVM World is the premier event to share best practices obtain training and build partnerships between government industry academia and tool venders in the arena of Integrated Program Performance Management (IPPM)rdquo EVM World 2015 is from May 27th to 29th in New Orleans LA USA The theme for EVM World 2015 is ldquoIPPM ndash The Collaborative Language for Successful Projectsrdquo

CPM invites you to save the date and submit abstracts on topics for EVM World 2015 Details are at wwwevmworldorg

The core content of EVM World is delivered through 90 sessions of Training Seminars Workshops Tools and Services and Practice Symposia

The Training Seminars are based on standardized training and learning objectives to provide a consistent educational opportunity The 36 Training Seminars are organized around the following Tracks

1 Principles of EVM2 Scope and Organizational Management3 Principles of Schedule Management4 Planning an Integrated Baseline5 Executing and Controlling6 Government Applications

The six Workshop sessions provide a forum to discuss emerging practice areas Workshops are forums to introduce and develop new and emerging practices and techniques to improve program management using integrated project performance management Objectives are to identify potential solutions

The 12 Tools and Services sessions cover the range of commercially available world-class performance management tools and service offerings from earned value tracking to scheduling to reporting Attendees will see the latest offerings from vendors and hear first-hand how these tools are effectively being used to manage todayrsquos most complex programs

The 36 Practice Symposia provide the bridge from Integrated Program Management (IPM) and EVM theory into real world practices The Practice Symposia is the avenue to share best practices lessons learned case studies research new or innovative solutions and insight for others to continue evolving the discipline and accepted practices The 36 Practice Symposia are organized around the following Tracks

1 IPM System Definition2 Project Start-up3 Scope and Technical Benefits Management4 Integrated Master Plan (IMP) and Integrated Master Schedule (IMS) 5 Basis of Estimates (BOEs)

SAVE THE DATE AND CALL FOR ABSTRACTS FOR EVM WORLD 2015By Susan Wood

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 39: The AGILE Issue - Agile and EVM - Measurable News 1-2015

Get Involved In CPMBecome A VolunteerMost people agree that the value of membership in any organization is greatly impacted by onersquos involvement in that organization CPM has many opportunities for you to become engaged in your organization

You can help with our certificate program become a leader in our two conferences each year or other volunteer opportunities as they appear on the website Take the time to read each of the job descriptions and ask questions of the point of contact for each if you are not sure what is expected PDUrsquos are available for volunteering in CPM

These opportunities are listed on our websitewwwmycpmorgABOUT USVOLUNTEERS

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 40: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

41

The College of Performance Management Washington DC (CPM WDC) SIG meeting was held on September 18 in Reston VA Moderated by Eva Walter Bill Mathis and Lisa Wolf answered questions about how to hire and retain top talent in program control Many had read Lisarsquos recent article in The Measurable News (httpwwwmycpmorgwp-contentuploads201408Measurable-News-Issue-3-2014pdf) and the lively discussion delved into the forthcoming certification program Bill Mathis is directing for the College of Performance Management The 25+ attendees were enthusiastic for the next meeting

It was held at the Offices of Drohan Management Group (DMG) (CPMrsquos trade association support company) in Reston VA and sponsored by Steelray Software Special thanks tor Don Kaiser Janette Coffee and Melissa Gustdorf of DMG and Jason Kinder of Steelray for making the evening such a success

CPM WASHINGTON DC SPECIAL INTEREST GROUP (SIG) SEPTEMBER 18 2014 MEETINGBy Barbara Phillips Provisional Chair

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 41: The AGILE Issue - Agile and EVM - Measurable News 1-2015

website wwwCBTWorkshopcom phone 888bull644bull5613

Let The CBT Workshop Assist You

Staff Augmentation

Tools Implementation and Training

Skilled EVMS Planners Schedulers Program Control Analysts Estimators and EVMS Consultants

Short or Long Term Assignments Contract-to-hire personnel

We have EVMS tools experts who can implement train integrate and migrate EVMS data in the following tools

Microsoft Project and Project Server Deltek MPM wInsight Cobra Open Plan Primavera

Everyone is Looking for Skilled EVMS ResourceshellipWe Have Them

EVMS Services

Web Based EVMS Training

EVMS Gap Analysis System Description Design and Development Desktop Operating Procedures IBR Preparation and Dispositioning CAM Training and Mock Interviews

EVMS Fundamentals and EVMS Advanced training testing and certification

Call UsToday

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

Proposal Support

EVMS StaffAugmentation

EVMS ComplianceReview Preparation

Integrated BaselineReview (IBR)Preparation

EVMSImplementation

EVMS Design andDocumentation

EVMS Requirementsor Gap Analysis

EVMS andProject Management

Training

Humphreys amp AssociatesEVMS

Consulting Services

Humphreys amp Associates offers a complete range of EVMS consulting services From proposal preparation and management system gap analysis to mock compliance reviews or contractor self-surveillance and third party validations HampA is the authority in EVMS

As the industry recognized leader in EVMS training HampA offers regularly scheduled Earned Value Management System Project Scheduling and Advanced Earned Value Management Techniques public workshops

HampA now offers a Control Account Manager (CAM) Certification Program ndash ideal for anyone looking to improve their EVM expertise and distinguish themselves with a professional certification

Interested in learning more Visit our web site at wwwhumphreys-assoccom or call us today at (714) 685-1730

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 42: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

The Quarterly Magazine of the College of Performance Management | mycpmorg

201501

43

The CPMTV chapter held its winter quarterly meeting on Tuesday December 2 in Huntsville Alabama Over 30 individuals attended the meeting with representation from industry government and education The meeting was graciously hosted by the Defense Acquisition University (DAU) alumni association at the DAU training facility The meeting was emceed by Bob Wasser of BCF Solutions with presentations by Mark Lumb Joel Little Dave Treshansky and Mr Bob Owen

Bob Wasser welcomed everyone to the meeting and encouraged those in attendance to consider becoming a CPM member Bob also introduced the proposed slate of officers for the CPMTV chapter and encouraged others to run for offices Finally Bob gave the dates and sponsors for the next four quarterly meetings and asked for volunteers to host future CPM meetings

Mark Lumb Dean South Region DAU began the meeting with an informative presentation entitled ldquoTelling the DAU Storyrdquo Dean Lumb told how DAU not only provides world class training to the defense acquisition workforce but also how DAU is involved in the local community including offering leadership development classes for City of Huntsville employees

Joel Little Professor of Earned Value Management (EVM) with DAU South followed with an interesting and educational presentation ldquoAre you Really Ready for an IBRrdquo In this presentation Professor Little discussed the purpose of an Integrated Baseline Review (IBR) noted the documentation needed to conduct a proper IBR and gave some useful best-practices from his years of experience with IBRs

Dave Treshansky Professor with DAU South and Mr Bob Owen Chief of the Earned Value Branch Lower Tier Project Office then led a thought provoking discussion on the Department of Defensersquos Better Buying Power Initiatives and the use of EVM with Fixed Price Incentive (FPI) contracts Many meeting attendees participated in this discussion with plenty of real-world problems and lessons-learned being offered

Bob Wasser wrapped up the meeting by thanking the presenters and the DAU Alumni Association and he reminded meeting attendees to fill out CPM membership forms if they are interested in joining

2015 CPMTV quarterly meetings are scheduled as followsbull Tuesday March 3rd from 1 - 4 pm at DAU and is being sponsored by True Plan bull Tuesday June 2nd from 1 - 4 pm at DAU and is being sponsored by Deltekbull Tuesday September 1st from 1 - 4 pm at DAU and is being sponsored by forProjectbull Tuesday December 1st from 1 - 4 pm at DAU and is being sponsored by BCF Solutionsbull More details to follow

CPM TENNESSEE VALLEY (CPMTV) CHAPTERQUARTERLY MEETING ndash DECEMBER 2 2014By Norman Dean

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 43: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS 201501

44 The Quarterly Magazine of the College of Performance Management | mycpmorg

VENDORS amp SERVICES

PO Box 20996Sarasota FL 34276

Phone (888) 644-5613

wwwCBTWorkshopcom

see our ad on p 42

Planning every step mdash Every step as plannedtrade

EVPreptrade Exam Study Guide EVPreptrade Exam Prep Workshops

wwwmgmt-technologiescomEarned Value Professional

Get it now

Got your

wwwlexemstrategycom

wwwhumphreys-assoccomsee our ad on p 42 see our ad on p 6

wwwsmawinscom

EVMLibraryorg The CPM Online Library

A comprehensive online library of resources about Earned Value Management (EVM) and related project management topics

The CPM library now contains well over 2100 documents such as articles and presentations and is growing everyday

Each document has been catalogued by subject area author publication date keywords etc

How You Can Contribute Do you have topical articles speeches or presentations

Contact Don Kaiser at Kaisermycpmorg to have your contributions included in this online resource

wwwsna-softwarecom

see our ad on p 4

S N A Software

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg

Page 44: The AGILE Issue - Agile and EVM - Measurable News 1-2015

THE MEASURABLE NEWS

201501The Quarterly Magazine of the College of Performance Management

mycpmorg