The Scrum methodology of agile software development marks a dramatic departure from waterfall management. In fact, Scrum and other agile processes were inspired by its shortcomings. The Scrum methodology emphasizes communication and collaboration, functioning software, and the flexibility to adapt to emerging business realities — all attributes that suffer in the rigidly ordered waterfall paradigm.

25th
OCT

Estimating Earned Business Value on Agile Projects

Posted by admin under Agile and Scrum, Agile Manifesto, Agile Principles, Scrum Basics, Scrum Discussion, Scrum Transitions

A pattern I’ve noticed is that Scrum projects are typically managed informally, with the only measures used being various velocity metrics and burndown charts. This may be an issue. Many project managers and executives resist scrum because these only measure the speed of delivery, not the project’s cost or the business value it generates. One of the major differences between traditional and agile projects is that traditional projects focus on delivering software that satisfies requirements, while agile projects focus on maximizing ROI through continuous feedback and re-planning.

This is where Earned Business Value calculations come in. It fits well with Agile projects, since the focus of agile projects is on business value rather than conformance to requirements (outcomes over outputs). In many cases, EVM metrics are easier to calculate and understand in agile environments than in traditional ones. There are three key management measures – Cost Performance Index (CPI), Schedule Performance Index (SPI), and Earned Business Value (EBV) – that provide information to help manage an agile project from and ROI perspective.

There is a solid white paper on this topic at .

I’d also be very interested in your comments to this post.

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Reader's Comments

  1. peter eriksson |

    Sounds great but I cant get the paper at
    http://www.collab.net/news/library/agile-whitepaper.html

  2. Atanu dey |

    Me too couldnt get into the whitepaper url. Can you please update the url?

  3. admin |

    I think the URL I gave out is missing an “s”. Try http://www.open.collab.net/news/library/agile-whitepapers.html

  4. admin |

    Sorry about that. I think the correct URL is http://www.open.collab.net/news/library/agile-whitepapers.html . The white paper is down the list a bit.

  5. admin |

    Somehow an “s” got dropped. Trying this again – http://www.open.collab.net/news/library/agile-whitepapers.html

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