Executive Overview of Managing Agile Programs with Earned Value

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Integrating Agile Software Development (Agile) on Earned Value Management ProgramsStarting with an EIA–748–C compliant Earned Value Management System, integrating an Agile Software Development Lifecycle (Agile) is straight forward when there is a Bright Line between the Performance Measurement Baseline (PMB) and the Sprints and Tasks of the Agile Software Development Process.

AGILE AT SCALE

forFAR 34.2 / DFARS 234.2Acquisition Programs

V10.0

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Performance–Based Project Management®, Copyright © Glen B. Alleman, 2002 ― 2016

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Performance–Based Project Management®

is a registered trademark of Niwot Ridge, L.L.C.Performance–Based Project Management ® ISBN 978–0–8144–3331–7

is a publication of American Management Association, Copyright © 2014

CMMI® is a Registered Trademark of Carnegie Mellon University, Pittsburg, PA

All material in this document is Copyright © 2002 ― 2016Glen B. Alleman, Niwot Ridge L.L.C.

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Send requests for reuse to [email protected]

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+ Table of Contents

§ Content Page0 Executive Overview 51 Introduction 212 Opening Background 763 Start With The End in Mind 1384 Framing Assumptions 1515 Foundations of Earned Value and Agile 1926 Performance Planning and Measurement 2207 Connecting the Dots Between Agile and EVM 2628 The Requirements Elicitation Problem 3089 Planning, Estimating, and Budgeting 33110 Building the PMB for an Agile Project 37011 Dependency Management in Agile 39912 Risk Management on Agile Programs 41013 Change Control in Agile and EVM 45914 Physically Connecting the Dots 51615 The Dark Side and EVM and Agile 52716 Failure Modes of Agile + Earned Value Management 54517 Maturity Models for Agile and Earned Value Management 60018 Root Cause Analysis 63819 Agile Contracts 70420 Conclusion 70521 Resources 726

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+ Getting Started

Robert Gates, the United States Secretary of Defense, in a September 2008 speech, said,

Our conventional modernization programs seek a 99% solution in years. Stability and counterinsurgency missions—the wars we are in—require 75% solutions in months. The challenge is whether in our bureaucracy and in our minds these two different paradigms can be made to coexist

‒ Gates, R. M. Speech to National Defense University (Washington, D.C.) Monday, September 29, 2008.

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+0. Executive OverviewEarned Value Management and Agile Software Development have much in common. The most important is progress to plan is measured by Physical Percent Complete with tangible evidence of working products at the end of planned period of performance.For software intensive system of systems, agile development provides powerful tools for producing working software on frequent boundaries to gain needed customer feedback to assure the program is going in the right direction.

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There are only two phases to a big program: Too early to tell and too late to stop!‒ Mr. Blaise Durante, Deputy Assistant Secretary (Acquisition Integration), U. S. Air Force


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Integrating Earned Value and Agile Development provides credible EAC and ETC for large Software Intensive System of Systems needed

to manage in the Fog of Emergence

Why Integrate Agile Development and Earned Value Management?

Navigation

Communications

Fire Control

Engine Controls

Counter MeasuresVisualization

Flight Controls

Life Support

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0. Executive Overview

+ What Do We Mean When We Say Agile?

† Dr. Ashton Carter, Under Secretary of Defense for Acquisition, Technology and Logistics, Sep/Oct, 2010 Defense AT&L

Pembroke Welsh Corgi in a goat herding competition, Boulder County Fair, Longmont Colorado.Chubby body, short legs, not “lean,” but able to turn “inside the loop” of the sheep = “agile?”

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+ What Is The Real Goal of Any Method – Agile or Traditional?

Increase The Probability of Program Success

1.0 Communications and Computing Infrastructure1.1 Acquisition, Logistics and Technology Enterprise Systems and Services (ALTESS)

1.2 Army Knowledge Online (AKO)/Defense Knowledge Online (DKO)1.3 Computer Hardware, Enterprise Software, and Solutions (CHESS)1.4 Defense Communications and Army Transmissions Systems (DCATS)1.5 Defense Messaging System-Army (DMS-A)1.6 Defense Wide Transmission Systems (DWTS)1.7 Force Projection Enablers (FPE)1.8 Information Technology Systems ( ITS)1.9 Installation Information Infrastructure Modernization Program ( I3MP)

1.10 Land Mobile Radio (LMR)1.11 Network Enterprise Services (NES)1.12 Network Service Center (NSC)1.13 Satellite Communications Systems (SCS)1.14 Vehicular Intercom Systems (VIS)1.15 Wideband Control (WC)2.0 Logistics

2.1 Army Enterprise Systems Integration Program (AESIP)2.2 Global Combat Support System-Army (GCSS-Army)2.3 Joint-Automatic Identification Technology ( J-AIT)2.4 Logistics Modernization Program (LMP)2.5 Movement Tracking System (MTS)2.6 Transportation Information Systems (TIS)3.0 Human Capital3.1 Army Human Resource System (AHRS)

3.2 Distributed Learning System (DLS)3.3 Force Management System (FMS)3.4 HR Solutions3.5 Installation Management Systems-Army ( IMS-A)3.6 Integrated Personnel and Pay – Army ( IPPS-A)3.7 Reserve Component Automation Systems (RCAS)4.0 Finance

4.1 General Fund Enterprise Business System (GFEBS)5.0 Medical 5.1 Medical Communications for Combat Casualty Care (MC4)6.0 Acquisition6.1 Acquisition Business (AcqBusiness)7.0 Biometrics7.1 Department of Defense (DoD) Biometrics (DoD Biometrics)7.2 Biometrics Enabling Capability (BEC)

7.3 Tactical Biometric Systems (TBS)

Army PEO EIS

1.1 Acquisition, Logistics, and Technology Enterprise Systems and Services (ATLESS)

Guidance to increasing the

PoPs

Seek ways to increase the Probability of Program Success not just apply new methods

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Do these sound

familiar?

9Performance–Based Project Management®, Copyright © Glen B. Alleman, 2002 ― 2016


+ Is The Department of Defense Ready To Embrace Agile Methodologies?

It seems so…

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+ While seeking to fulfill the directives of NDAA §804 …

Plus a few more … FAR 52.234-2, 34.201, 34.202, OMB Memo(s) M-05-23, M-04-24, DFAR 252.234–7002, DoD Instruction (DoDI) 5000.02, Defense Acquisition Guidebook, Chapter 11, Section 11.3.1.3.

… let’s not forget these directives too.

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+ Rule for Earning Value in Agile

Each Release in Agile is a “value earning” opportunity

The next step is to connect Agile’s definition of “value”

with Earned Value’s definition of valueBusiness Value ÙÚ EV

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Before Going Further, Let’s Bust Some Myths

13Performance–Based Project Management®, Copyright © Glen B. Alleman, 2002 ― 2016

+ A Few Myths of Defense Acquisition†

† “Modern Acquisition Myths, “ Capt. Dan Ward, USAF, Program Management., Mar/Apr, 2003

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+ 3 Ways To “Connect the Dots”

Earned Value Management Agile

Both EV and Agile Measure Progress as Physical Percent Complete

1. Measures progress in units of “physical percent complete.”

1. Each iteration produces 100% working products.

2. Forecast future performance using past performance.

2. Forecast performance in units of products produced.

3. Take a systems approach to the development of products by connecting Cost, Schedule, and Technical Performance.

3. Increasing fidelity of product and problem understanding occurs after each Sprint and Release.

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+ 12 Principles of the Agile Manifesto

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+ 11 Critical Criteria for Earned Value Managementn The 32 EVM Criteria are all designed to deliver value.

n These 11 are the basis of “connecting the dots.”

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+ Here’s A Quick Look at the Connections

# 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 & 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

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But First, Let’s Look At The Business Management Practices …

…That Must To Be Present Before Connecting Agile and EVM19

Provide managers with information at a practical

level of summarization

Relate time phased budgets to specific

contract tasks

Enable statistical estimation of

completion costs

Track and monitor discrete project

metrics

Communicate project status

Provide quantitative data for decision making

Provide a documented project performance trail

Alert project managers to potential schedule and cost risk


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… By providing actionable information in units of measure meaningful to the decision makers

Agile + EVM is a Tool to Increase Probability of Program Success …

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Executive Overview of Managing Agile Programs with Earned Value

Technology

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