The Scrum approach to agile software development marks a dramatic departure from waterfall management. Scrum and other agile methods were inspired by its shortcomings. Scrum emphasizes collaboration, functioning software, team self management, and the flexibility to adapt to emerging business realities.
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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Scrum Training Series
- Scrum based funding model – 20 percent May 9, 2013
- The Next Big Idea March 5, 2013
- On Being Available February 17, 2013
- Should Scrum Always Require the Product Owner to Attend the Sprint Retrospective Meeting? February 5, 2013
- Happiness Metrics January 23, 2013