Agile Project Management and Earned Value Management

Agile Project Management and Earned Value Management

The growing importance of quickly and affordably delivering software intensive systems requires programs to react to changing demands of the operational environment swiftly and has led to an increased focus on capability-based planning and iterative product development. Capability-based planning and execution focuses on delivering the highest priority system features to the stakeholders as quickly and affordably as possible. To meet this demand, Program Managers need a planning and execution method that can quickly and efficiently react to changes across all levels of the program.

An Industry Practice Guide for Agile on Earned Value Management Programs May 26, 2019, Version 1.3, National Defense Industrial Association Integrated Program Management Division

This compendium addresses the notion that Agile and Earned Value Management or any other formal program planning and controls process are incompatible.

This is not the case, nor has it ever been the case. As explained in Larman's paper as the starting point for debunking this notion:

Supporting and expanding on this history can be found in the following materials used in the domain of Software Intensive System of Systems (SISoS).


Dan Lynch

Senior EVMS/IPM Consultant

2 年

Nice post Glen!! My compliments

Laila Bakry

Project Manager

2 年

I have extracted some very interesting info from the reading above related to using Agile with Earned value in governmental organizations. ·???????Agile and EVM are complementary when properly implemented together and enable a robust overall management process. ·???????The product roadmap supports and should be traceable to the work packages, planning packages, and control accounts. ·???????In the product backlog, capabilities directly relate to the Control Account level of the WBS. ·???????Agile release planning is similar to rolling wave planning. ·???????Constraints and dependencies that exist in the project schedule should influence the product roadmap, the Agile counterpart to the schedule. ·???????EVM provides the PM the metrics and information needed for situational awareness and Agile metrics are used to underpin and support the EVM metrics. ·???????The Agile data can be plotted using a burn-up chart and when shown side by side with the Level 1 EVM status chart, the two graphs should show similar trends.

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Laila Bakry

Project Manager

2 年

Have you ever wondered if you can use earned value metrics on Agile projects? Or do you use them already? Going back to the basics, EV compares actual project performance to a planned performance. Some argue that as the original requirements (and hence plan) are going to change, EVM becomes obsolete as a tool ; it’s really for the waterfall approach! A benefit of using EVM is that it is a leading indicator. And you can change SPI and CPI into agile terms, like: -???????If you planned to complete 60 user stories and did only 45, then your SPI = 45/60 = 0.75 meaning you are working at only 75% of the rate planned. -???????If your AC is $50,000 with a value for completed work of $40,000 only, then your CPI = 40,000/50,000 = 0.80 meaning you’re only getting 80 cents value on the dollar.

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John Reeder, PMP, SSGB, JD

Difficult projects are the most enjoyable to tackle

2 年

Glen, your articles are just great! I store them and attempt to digest the meal over time. A great blend of SE and PM.

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