Agile Governance, Scrum Escalation, Agile EVM

1. Pierre E. NEIS From Governance to Project Management: Scrum ?

2. Agenda Scope & Results: market expectations in terms of Governance Agile Management Framework Agile Governance: AgileEVM Indexes & References Pierre NEIS - 4th PM Congress 2

3. Scope 06.2009 : Fedil-ICT and Centre de Recherche Public Henri Tudor Report « Gouvernance IT et rôle du CIO dans les entreprises luxembourgeoises : Etat des lieux et bonnes pratiques » The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008 Pierre NEIS - 4th PM Congress 3

4. 1 – Fedil-ICT / CRP HT Conclusions of the Fedil-ICT et Centre de Recherche Public Henri TUDOR Report Pierre NEIS - 4th PM Congress 4

6. The priority skills of the CIO are:

7. IT needs analysis

8. Arbitrate and select

9. Managing IT SecurityHow? Pierre NEIS - 4th PM Congress 5

11. The CIO participates at the Executive Comittee

12. IT is the subject of a specific item in the agenda of the executive committee

13. Platforms enable communication and sharing between business and IT

14. Business requirements are formalized in business casesHow? Pierre NEIS - 4th PM Congress 6

16. Business is involved in IT projects

17. IT accompanying uses

18. The CIO set up a Quality Management

19. IT communicate

20. IT ensure the IT SecurityHow? Pierre NEIS - 4th PM Congress 7

22. CIO trains himself

23. CIO gets informedHow? Pierre NEIS - 4th PM Congress 8

25. IT Governance is a Project Management

26. The CIO is the Project PilotPierre NEIS - 4th PM Congress 9

27. # 1 Result IT switches into Project Pierre NEIS - 4th PM Congress 10

28. 2 –PricewaterhouseCoopers Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008 Pierre NEIS - 4th PM Congress 11

30. Inefectiveness if no aligmentbetween IT Governance and IT Operations

31. Criticalfactors to control :

32. Technologyenablement

33. Communication & change management

34. Performance management & benefitstrackingPierre NEIS - 4th PM Congress 12

35. The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008 Expectedbenefits by adoptingthisapproach Governance/ Operationalignment communication & cooperation Increased agility and flexibility of IT Change Reaction Greater Value delivery Added Value Reduced risks & cost (…) through more responsible IT resource Team Building Pierre NEIS - 4th PM Congress 13

36. The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008 Expectedbenefits by adoptingthisapproach Identify the organizational culture and conditions change Getting the support of Senior Management and Vision Set goals and achievable expectations Define a Benefits Management EvaluateMaturityLevel Pierre NEIS - 4th PM Congress 14

37. The Report « Improving IT Governance. Manage, control and monitor IT within the Business », pWc 2008 Expectedbenefits by adoptingthisapproach Communication value as a Key Success Factor Quick wins to deliver results and to gain greater acceptance of project Linking IT Governance with Business Key Themes Don’t over-engineer IT Governance Pierre NEIS - 4th PM Congress 15

38. # 2 Results Pierre NEIS - 4th PM Congress 16

39. Agility? Pierre NEIS - 4th PM Congress 17

40. Agile Management Framework Agile Manifesto Agile Concept Scrum Agile Management Framework Pierre NEIS - 4th PM Congress 18

41. Agile Manifesto Pierre NEIS - 4th PM Congress More Prioritization Less 19

42. Agile Manifesto objectives Employee Engagement Empowered, committed and happy employees The Magic Triangle Value Creation Maximize ROI and optimize cash flow Customer Satisfaction Serve the Customer Pierre NEIS - 4th PM Congress 20

43. Scrum Pierre NEIS - 4th PM Congress 21

44. The Scrum Concept + Product + Process Empowered Involved Just enough, Just in Time Doing the Right Thing the Right Way Doingwell (Product) Doingwell (Process) 22

45. Self directed Teams vs. Traditional Organization Source: "Leading self-directed work teams“ by Kimball Fisher SCRUM 23

47. Quality is not negotiable

48. Velocity

49. Communication

50. Reactivity

51. Team Building24

52. Agile Management Framework The Agile Project Managers are concerned with two key performance indicators : Backlog Size Velocity Product Backlog = list of project requirements Velocity = amount of backlog that the team can deliver in a Sprint / Iteration Backlog Size ÷ Velocity per Sprint/Iteration = Number of Sprints/Iterations to deliver the Project 25

53. Scrum Planning Onion Concept CIO Chief Product Owner Vision Product Owner Added Value + Velocity Roadmap Team + ScrumMaster 26

54. Scrum: the Artifacts 27

55. Agile Governance: AgileEVM Project Portfolio Management with AgileEVM Scrum: Metrics Key Earned Value Management (EVM) – Concepts AgileEVM Background Expand AgileEVM to Portfolio Pierre NEIS - 4th PM Congress Source: Brent BARTON 28

56. Project Portfolio Management with AgileEVM Objectives: We want to mesure the Outcome not the Ouputs Business Value Process Prioritization to maximize Business Value Efficient shipping to minimize costs Redistribution of resources when costs are too high or profits too low. Pierre NEIS - 4th PM Congress 29

57. Scrum: Metrics Pierre NEIS - 4th PM Congress 30

58. Key Earned Value Management (EVM) Concepts Integrates Cost and Schedule Performance Financial forecasts based on actual cost : Consumed Costs, Consuming Rate, Time Allocation, etc. Unlike the velocity, the Actual Cost is the cumulative Team Costs Follow the ANSI standard (ANSI/EIA -748) Pierre NEIS - 4th PM Congress 31

59. AgileEVM Background Release dates are based on average velocity (storypoints)= estimate at complete (euros) Assumption: the ratio(story points completed)/(total story points in a release) is a good mesure for Actual Percent Complete Pierre NEIS - 4th PM Congress 32

60. Expand AgileEVM to Portfolio AgileEVM can coexist with EVM at Portfolio level – with caution Help to manage the delivery with integrating of the best of Agile, Scrum and EVM We can compare productivity without degrade velocity Pierre NEIS - 4th PM Congress 33

61. AgileEVM: brief Analyze Pierre NEIS - 4th PM Congress 34

62. Examples Pierre NEIS - 4th PM Congress Scoreboard Velocity Release Burndown SPI (schedule performance index) & CPI (cost performance index) 35

63. Scoreboard Pierre NEIS - 4th PM Congress PI: Planned iteration IL: iteration length PRSP: initial Story Points BAC: budget as completed Average velocity from start Actual % completed Cumulative story points n/PI SPA: Story Points added This gives us the ability to give a complex burndown chart that shows scope growth and velocty BAC - cumEV n: iteration Number (BAC - cumEV)/cumCPI cumulative story point completed for n sprints SPC: Story Points completed 36

64. Velocity Pierre NEIS - 4th PM Congress 37

65. Release Burndown Pierre NEIS - 4th PM Congress 38

66. SPI (schedule performance index) & CPI (cost performance index) Pierre NEIS - 4th PM Congress 39

67. Governance Structures Sample Product Owner Team Complex Product Owner Hierarchy Pierre NEIS - 4th PM Congress 40

68. work is decomposed from goals, and reported to track progress in reaching goals The wailing Wall Pierre NEIS - 4th PM Congress 41

69. Indexes & References Organizational Structure: What is the role of Management? Scrum Reporting Relationship Companies using SCRUM Pierre NEIS - 4th PM Congress 42

70. Organizational Structure: What is the role of Management? CIO, CTO, VP Engineering Product Line Manager Product Line Manager Product Line Manager Functional Manager Functional Manager Functional Manager Usability Engineering DBA Infrastructure Quality Assurance PMO Copyright 1996-2007, ADM, all rights reserved v8.0 Pierre NEIS - 4th PM Congress 43

71. Scrum Reporting Relationships Development Team Development Team Development Team Pierre NEIS - 4th PM Congress 44

72. Companies using SCRUM Pierre NEIS - 4th PM Congress 45

73. Pierre NEIS - 4th PM Congress 46

75. Project Portfolio Management with AgileEVM by Brent Barton 47

76. Thank You Pierre NEIS - 4th PM Congress Pierre E. NEIS Certified Scrum Product Owner President of AIGLU Senior Management Consultant pneis@agilepartner.net www.linkedin.com/in/pierreneis 48

77. The oak one day says to the reed:—You have a good right to blame the nature of things: A wren for you is a heavy thing to bear. The slightest wind which is likely To wrinkle the face of the water Compels you to bow your head—While my brow, like Mount Caucasus, Not satisfied with catching the rays of the sun, Resists the effort of the tempest. All for you is north wind, all seems to me soft breeze. Still, if you had been born in the protection of the foliage The surrounding of which I cover, I would defend you from the storm. But you come to be most often On the wet edges of the kingdoms of the wind. Nature seems to me quite unjust to you. —Your compassion, answered the shrub, Arises from a kind nature; but leave off this care. The winds are less fearful to me than to you. I bend and do not break. You have until now Against their frightening blows Stood up without bending your back; But look out for what can be. —As the reed said these words, From the edge of the horizon furiously comes to them The most terrible of the progeny Which the North has till then contained within it. The tree holds up well; the reed bends. The wind doubles its trying; And does so well that it uproots That, the head of which was neighbor to the sky, And the feet of which touched the empire of the dead. The Oak and the Reed (Translation by Eli Siegel) Jean de LA FONTAINE (1621-1695)

78. Pierre NEIS - 4th PM Congress 50