Integrating Agile and EVM
https://blog.greenprojectmanagement.org/index.php/2017/08/04/evm-and-agile-can-they-work-together/

Integrating Agile and EVM

Compatible Approaches

Agile and EVM can work together. Agile is a technical development approach for producing project deliverables and results. EVM is a method for tracking progress against a plan and learning from variances, indices, and forecasts. Each must be tailored for them to work together.?

Origins of Agile

Agile is more than SW. Although the Agile approach stems from the 2001 Manifesto, it has a background long before that. Although the 2001 Manifesto focuses on software development and delivery, the Agile approach is applied to many project types today.?

Similarities of Agile and EVM

Agile and EVM rely upon decomposing work into small end-to-end capabilities that can be developed and verified. They prioritize work based on meeting the project or program objectives and use multiple verification methods, such as simulation, prototypes, and end-item systems.

Planning for Agile and EVM

Agile Planning and EVM planning should be integrated (avoid separate planning processes), but this is complicated by their differing cycles. Traditionally, EVM planning and reporting cycles center around accounting durations (weeks or months), which are not necessarily uniform. Agile planning is centered around fixed time boxes that are uniform in length, such as two-week periods. Therefore, determining the status in Agile sometimes aligns differently from the status typically reported in EVM. When using EVM for Agile programs, the PMO should use the Agile approach to plan and track progress and adjust the EVM reporting cycle. ?

Work Decomposition

Agile and EVM decompose the project work in a hierarchical format. At the highest level of the WBS hierarchy, control accounts summarize the significant groupings of work and resulting products. At the lowest management level, each work package describes the deliverables, resources, and time required to achieve them.

While the Agile approach might not typically use the same WBS terms (such as Work Package) in decomposing the work, it uses a hierarchical breakdown similar to the WBS standard. Agile progress, such as completion of epics or features, should form the basis of technical % complete for tracking EVM cost and schedule.

Reporting

Agile work status and EVM reporting need to be aligned. The agile approach decomposes end-to-end capabilities that can be implemented to demonstrate and gather feedback to adjust the next iteration of work. EVM typically uses a product-oriented decomposition centered around product-oriented WBS instead of capabilities that flow through each element. To integrate EVM and Agile, the decompositions must have a point of alignment.

Agile and EVM metrics should be shown to decision-makers, providing the same view of the program status. Agile approaches decompose work down to features and then stories. Agile teams accept and work on stories and progress on the completion of stories roll up to progress at the feature level. Based on the alignment of the WBS status, the alignment point will roll into the schedule, and then EVM status and metrics will flow out of the schedule.

Changes to the Project Scope

With the predictive approach, client-approved changes to the project scope are reflected in revisions to the content of one or more work packages, and the impact of those changes is rolled up within the WBS to the control accounts and, ultimately, the project baselines of scope, cost, and time. If the changes result in a significant increase or decrease in the scope, cost, or duration, the project may be re-baselined. That results in a new project budget termed the Budget at Completion in EVM and a new project duration.

With the Agile approach, changes to the project scope are expected to occur as the project proceeds. The emphasis is on producing results during each timebox period to benefit the client and users. The total project cost may be forecast based on the number of expected sprints (or other timeboxes) and the staff cost incurred during each sprint. Scope features are summarized in a product backlog at the project start and may be allocated to the anticipated number of sprints. That can be used to predict the expected duration of an Agile project. However, the actual assignment of features to be completed during each sprint is confirmed only at its outset. Therefore, the expected completion of features cannot be confidently predicted to the same degree as during a project using a predictive approach.

Final Results Uncertainty

Some projects' final objective still needs to be discovered at the outset. This is particularly true of research projects, new product development projects, and organizational development projects—such as a corporate merger. The project's overall scope, budget, and timeline cannot be established in those cases. The best approach is to clarify the scope, cost, and schedule as the project proceeds and more information becomes available. This is termed a rolling wave technique.

Using EVM is possible but challenging for these projects, as the Budget at Completion can only be estimated for the short term.

The Agile approach has some advantages with rolling wave projects. It is based on flexibility and adjustment to client needs as the project proceeds. ?

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