Monday, September 28, 2009

Agile Earned Value--Part I

There's a common misperception that agile and earned value don't mix: that earned value is too heavy and anti-agle.  Not so! Agile projects earn value by delivering product incrementally, periodically, affordably, and according to the priority of the customer.

If the customer is not satisfied, he may not want to pay for our efforts. If the customer is not successful, he may not be able to pay. If he is not more successful than he already was, why should he pay?
Niels Malotaux
EVO Consulting Project Manager

The agile rule for earned value:
Each release is a value earning; without a go-live to production, there is no earned value.

In project terms, earned value means planning for an outcome and then achieving it, applying only the intended resources. When the project is completed and expectations are met, the entire value is earned—all requirements are rendered in production and equated to benefits.

Agile methods change the bookkeeping a bit, but by Agile Principle 1, delivering value is at the top of the list:

Our highest priority is to satisfy the customer
through early and continuous delivery of valuable software.

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