3. Agile Value Curve
3
Strategies
• Adaptive
• Evolutionary
• Collaborative
• Just-in-Time
• Plan
Where is the right cut-off point?
Time (iterations)
Money
Value to Cost Curve
Value
Cost
5. What Flavor of Agile?
• Scrum
• Crystal Clear
• Extreme Programming (XP)
• Adaptive Software Development
• Feature Driven Development
• Dynamic Systems Development Method
(DSDM)
• Lean Software Development
6. Scrum
• Primarily a project management method
– Project planning
– Release planning
– User Stories
– Daily stand-up
– Story points
– Velocity
Ken
Schwaber
and Mike
Beedle
7. Estimating
As a user I need to
blah blah so that
blah
4
As a user I need to
blah blah so that
blah
2
As a user I need to
blah blah so that
blah
4
As a user I need to
blah blah so that
blah
8
As a user I need to
blah blah so that
blah
1
As a user I need to
blah blah so that
blah
2
As a user I need to
blah blah so that
blah
4
As a user I need to
blah blah so that
blah
8
As a user I need to
blah blah so that
blah
8
As a user I need to
blah blah so that
blah
1
As a user I need to
blah blah so that
blah
2
As a user I need to
blah blah so that
blah
2
Universe of work
=
46 points
Team velocity
=
8 points
POINTS
TIME
8. Extreme Programming (XP)
• Primarily a developer-centric approach
– Test Driven Development (TDD)
– Unit tests
– Pairing
– Continuous Integration (CI)
– Refactoring
Kent Beck
9. “Continuous Integration is a software development
practice where members of a team integrate their work
frequently, usually each person integrates at least daily -
leading to multiple integrations per day. Each integration is
verified by an automated build (including test) to detect
integration errors as quickly as possible. Many teams find
that this approach leads to significantly reduced integration
problems and allows a team to develop cohesive software
more rapidly.”
http://www.martinfowler.com/articles/continuousIntegration.html
10. Crystal Clear
• Focuses on people, not methods or
artifacts
– Teams of 6 to 8
– Co-location
– Reflective improvement
– Team safety
– Singular focus
Alistair Cockburn
12. Lean Software Development
• Optimize the whole
• Eliminate waste
• Build quality in
• Learn constantly
• Deliver fast
• Engage everybody
• Keep getting better
Mary
Poppendieck
13. Optimize the Whole
Requirements Development Testing
As an online banking
customer, I want to be
able to monitor my daily
balance so that I never
over-spend my account.
2
14. Training
Project kick-off
Release planning
Iteration
planning
Daily stand-up
Review / demo
Retrospective
Short feedback
loops
Inspect and adapt
Collaboration and
teamwork
Deliver high-
value, high-
quality working
software quickly
and frequently
Iterations
Pairing
Fundamentals Ceremonies Techniques
So What?
Goal
15. How Important is Health (Being)?
• “Organizations that focused on performance AND
health simultaneously
• were nearly twice as successful as those that focused
on health alone,
• and nearly three times as successful as those that
focused on performance alone.”
Beyond Performance: How Great Organizations Build
Ultimate Competitive Advantage, Scott Keller & Colin Price
(McKinsey & Co.)
25. Appropriate Quality
Pizza Company –
“many of our
customers can
barely read…”
Medical device company –
“Our software truly is
mission critical to our
patients…”
27. Scale What is measured?
Meter How it will be measured?
Benchmark Situation as it stands now
Constraint Minimum acceptable value
Target Desired result
Tom Gilb, Competitive Engineering
Success Metrics
Identify the metrics defining when the
project is a success
28. Value Calculation Framework
Value Cost
Portfolio Financial Business Case (NPV/IRR) Portfolio T-Shirt Sizing
Project Same as above
Inception - Revised Cost Estimate
Iterative Development - Monthly Forecast
Capability Decision Making Sweet Spot
Where we want to start/continue to make better informed
Value Engineering Decisions
ROI = Value/CostFeature
Story
MoSCoW or other prioritization
method
Story Points (3,5,8)
Value Cost
Portfolio Financial Business Case (NPV/IRR) Portfolio T-Shirt Sizing
Project Same as above
Inception - Revised Cost Estimate
Iterative Development - Monthly Forecast
Capability Decision Making Sweet Spot
Where we want to start/continue to make better informed
Value Engineering Decisions
ROI = Value/CostFeature
Story
MoSCoW or other prioritization
method
Story Points (3,5,8)
Top Down –
Allocation of
Value
Bottoms Up –
Calculation of
Cost
We need to understand both Value and Cost at the Capability/Feature level.
Source: Pat Reed
29. Features with Value Points
As a sales associate, the
ability to calculate the
total amount of the sale.
C-5
As a sales executive, the
ability to view all sales by
product type, geographic
region, and sales associate.
C-8
As a sales supervisor, the
ability to Verify the
adequacy of the Customer’s
Credit Rating.
C-3V-13
V-11
V-2
Feature Points are a calculation of cost.
Value Points are an allocation of revenue.
30. If we do not measure
both the cost and the
value, the entire
project can cost us
more than it is worth.
Measuring Value Against Iterations
31. When to finish?
This is the art of
leadership – and the
agile approach gives
us the option to finish
anytime we see
“enough” value.
What is your
definition of enough?
We could finish here, or here, but never here
Measuring Value Against Iterations
38. Agile
Project
Team
Indicative Team Composition
Product Owner
Architect
Tech Lead
Developer
Tester
IM
Business
Analyst
UX Designer
Project Owner /
Sponsor
Database
Administrator
Infrastructure
Delivery Mgr.
Operations, Integration
& Support
Program Manager
Core
Team
Security Architect
Other Business
Representatives
Extended
Team
Coach
Project Stakeholder
Board PM
Architects, Process
Specialists and SMEs
