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Measuring the Realization of Benefits
Measuring the
Realization of Benefits
What Shall We Discuss Today??
• The Problem
• A little bit about Benefits Realization Management
• A little bit about Agile
• Why discuss this at an Agile Conference?
• What to strengthens our ability to Realize Benefits?
• What weakens our ability to Realize Benefits?
The Problem
• Methods and frameworks are pursued and implemented
with the expectation of a return on investment
• One of those returns is the ability of move a needle in
some desirable direction
• Organizations expect to Realize Benefits from their Agile
Transformations, as well as the teams who adopt Agile
• So why are organizations who adopt Agile still
struggling to show the value of Transformation?...
• And the value of products developed using methods
consistent with Agile Principles
Let’s Discuss!
Benefits Realization Mgmt Concepts
1. Organize and manage initiatives in such a way that
potential benefits are actually realized - PvA
2. Define and manage the Realization of Benefits as a
process… something that can be repeated
3. Implement, monitor, and control at a Project
Management level
4. Ensure the implementation of the most valuable
initiatives
Hmmm… that last one sounds familiar
A Bit About Agile
Our highest priority is to satisfy the
customer through early and continuous
delivery of valuable software
Welcome changing requirements, even
late in development. Agile processes
harness change for the customer’s
competitive advantage
Deliver working software frequently,
from a couple of weeks to a couple of
months, with a preference to the
shorter timescale
Business people and developers must
work together daily throughout the
project
Build projects around motivated
individuals. Give them the environment
and support they need, and trust them
to get the job done
Agile processes support sustainable
development. The sponsors, developers,
and users should be able to maintain a
sustainable pace indefinitely
Working software is the primary
measure of progress
The most efficient and effective method
of conveying information to and within
a development team is face-to-face
conversation
Continuous attention to technical
excellence and good design enhances
quality
Simplicity – the art of maximizing the
amount of work not done – is essential
The best architectures, requirements,
and designs emerge from self-
organizing teams
At regular intervals, the team reflects
on how to become more effective, then
tunes and adjusts its behavior
accordingly
1 2 3
4 5 6
7 8 9
10 11 12
Yep… that’s all you need to know. Smart people and common
sense will take care of the rest!
Why Discuss This at Agileindy?
• Benefits Realization aims to push the highest value
initiatives to the top of the priority – then delegate to
PMs• Please direct me to the Agile Principle which specifically deals with prioritization
• Agile is concerned about rapidly, accurately, and
predictably delivering those highest value initiatives• In industry today, well-oiled Agile organizations already demand the discipline
that Benefits Realization AND Project Management brings to the table
• Project Management wants to plan, execute, monitor,
and control those things• Lots of PM bases are covered by well-designed Benefits Realization and Agile
processes…
• But neither are well-postured to bridge the gap and assume accountability for
monitoring and controlling the Realization of Planned vs. Actual Benefits!
They Were Made for One Another!
Enterprise Product
Delivery Needs
Agile
CapabilitiesAgile Team Leads, Product Owners,
Scrum Masters, Engineers,
Business & Technical SMEs
Strategy Bridge Execution
Benefits
Realization
ManagementBusiness & Technology Leaders,
Value Stream Owners, Financial
SMEs, Sponsorship
1. Identify potential
Benefits
2. Define Realization as
an end-to-end
process
3. Manage through
Project Management
4. Implement the most
valuable initiatives
Project
ManagementProgram Managers, Project
Managers, Sponsorship, Product
Owners
1. Deliver valuable,
working software
frequently
2. Promote teamwork
between customers
and developers
3. Be consistent, but
receptive to change
4. ALWAYS look for
ways to be better!
What Strengthens These Capabilities?
• When you ask for “Agile”… demand Agile!
• If you ask for an “Agile Coach”, and your staffing firm
sends you a “good Scrum Master”… what will happen?
• Identify and avoid the “Coaches” who seem to come
with a bag of cookie cutters – no real problem solving
ability
• Transformation requires dynamic problem solving ability
• If we use the 12 Principles as our compass, and people
as the map… well that gives us options now, doesn’t it?
☺
A Common Depiction of “the 12”
The “12 ‘as-built’ Agile Principles”
Our highest An incidental priority is to
satisfy the customer through relatively
early and continuous ad-hoc delivery of
valuable software branches of code that
have been promoted through our
environments per our processes
Business people and developers must
work together daily throughout the
project
Working software Following a process is
the primary measure of progress
Simplicity – the art of maximizing the
amount of work not done – is essential
(we don’t understand what this means
so we skipped over it!)
Welcome changing requirements, even
late in development. Agile processes
harness change for the customer’s
competitive advantage
Deliver working software frequently,
from a couple of weeks or
hours to a couple of months, with a
preference to the shorter timescale!!!!
Build projects around motivated
individuals. Give them the environment
and support they need, and trust them
to get the job done
Agile processes support sustainable
development. The sponsors, developers,
and users should be able to maintain a
sustainable pace indefinitely
The most efficient and effective method
of conveying information to and within
a development team is face-to-face
conversation (its 2019… is this still
true??)
Continuous attention to technical
excellence and good design enhances
quality
The best architectures, requirements,
and designs emerge from self-
organizing teams provided the capability exists to cultivate these teams
At regular intervals, the team reflects on
how to become more effective, then
tunes and adjusts its behavior
accordingly… Lessons Learned,
right? ☺
The “12 – Agile - Principles”
Our highest priority is to satisfy the
customer through early and continuous
delivery of valuable software
Business people and developers must
work together daily throughout the
project
Working software is the primary
measure of progress
Simplicity – the art of maximizing the
amount of work not done – is essential
Welcome changing requirements, even
late in development. Agile processes
harness change for the customer’s
competitive advantage
Deliver working software frequently,
from a couple of weeks to a couple of
months, with a preference to the
shorter timescale
Build projects around motivated
individuals. Give them the environment
and support they need, and trust them
to get the job done
Agile processes support sustainable
development. The sponsors, developers,
and users should be able to maintain a
sustainable pace indefinitely
The most efficient and effective method
of conveying information to and within
a development team is face-to-face
conversation
Continuous attention to technical
excellence and good design enhances
quality
The best architectures, requirements,
and designs emerge from self-
organizing teams
At regular intervals, the team reflects on
how to become more effective, then
tunes and adjusts its behavior
accordingly
The Same 12 Principles… better
Our highest priority is to satisfy the
customer through early and continuous
delivery of valuable software
Welcome changing requirements, even
late in development. Agile processes
harness change for the customer’s
competitive advantage
Deliver working software frequently,
from a couple of weeks to a couple of
months, with a preference to the
shorter timescale
Business people and developers must
work together daily throughout the
project
Build projects around motivated
individuals. Give them the environment
and support they need, and trust them
to get the job done
Agile processes support sustainable
development. The sponsors, developers,
and users should be able to maintain a
sustainable pace indefinitely
Working software is the primary
measure of progress
The most efficient and effective method
of conveying information to and within
a development team is face-to-face
conversation
Continuous attention to technical
excellence and good design enhances
quality
Simplicity – the art of maximizing the
amount of work not done – is essential
The best architectures, requirements,
and designs emerge from self-
organizing teams
At regular intervals, the team reflects
on how to become more effective, then
tunes and adjusts its behavior
accordingly
1 2 3
4 5 6
7 8 9
10 11 12
The 12 Agile Principles ‘as-demanded’
Our highest priority is to satisfy the
customer through early and continuous
delivery of valuable software
Welcome changing requirements, even
late in development. Agile processes
harness change for the customer’s
competitive advantage
Deliver working software frequently,
from a couple of weeks to a couple of
months, with a preference to the
shorter timescale
Business people and developers must
work together daily throughout the
project
Build projects around motivated
individuals. Give them the environment
and support they need, and trust them
to get the job done
Agile processes support sustainable
development. The sponsors, developers,
and users should be able to maintain a
sustainable pace indefinitely
Working software is the primary
measure of progress
The most efficient and effective method
of conveying information to and within
a development team is face-to-face
conversation
Continuous attention to technical
excellence and good design enhances
quality
Simplicity – the art of maximizing the
amount of work not done – is essential
The best architectures, requirements,
and designs emerge from self-
organizing teams
At regular intervals, the team reflects
on how to become more effective, then
tunes and adjusts its behavior
accordingly
1 2 3
4 5 6
7 8 9
10 11 12
Supporting Tool – Earned Value Mgmt
Scope
Cost Time
For every dollar I’m
spending, am I
getting an equivalent
unit of product
delivered?
For every hour of
time I allocate, am I
getting an equivalent
unit of product
delivered?
Quantitative and objective
impacts to current and
future state of project
health
Why Does it Work? - Visibility
Scope
Web App Dev
Team Backlog
Web Product 1
Requirements
Web Product 2
Requirements
Web Product 3
Requirements
Identification, benefits identification & prioritization
of major initiatives or capacity pulls
Story/Feature Level Prioritization
Agile Team
Agile Team Attributes:
- Size
- Experience
- Skills
- Velocity (Pace)
Funding Boards,
Value Stream
Owners
PMs, POs, Agile
Team Members
as needed
Sponsor, PO
Agile Team
Grooming &
Planning
Delivery
The Mechanics and the Math
Project Baseline Data Project Actuals (to date)
Project Budget (BAC) $2.0M Cost Expended (AC) $1.19M
Project Duration 150 Days Days Elapsed 76
Number of Stories 176 Stories Completed 80
Number of Points 1874 Points Completed 902
Earned Value Data – Present/Current Metrics
Based on Number of Stories Based on Number of Points
% Complete = 45% % Complete = 48%
Earned Value EV
(%Complete*BAC) =$909,090 EV = $962,646
Cost Performance Index
CPI (EV/AC) = .76 CPI = .80
Cost Variance CV (EV-
AC) = -$280,910 CV = -$227,354
Planned Value PV = $1,013,333 PV = $1,013,333
Schedule Performance
Index SPI (EV/PV) = .89 SPI = .95
Schedule Variance SV = -$104,243 or 8.5 days
behind scheduleSV =
-$50,687 or 4 days
behind schedule
The Mechanics and the Math
Project Baseline Data Project Actuals (to date)
Project Budget (BAC) $2.0M Cost Expended (AC) $1.19M
Project Duration 150 Days Days Elapsed 76
Number of Stories 176 Stories Completed 80
Number of Points 1874 Points Completed 902
Earned Value Data – Predictive Metrics
Based on Number of Stories Based on Number of Points
Estimate at Completion
(Cost) = $2,647,803 EAC (Cost) = $2,488,246
Variance at Completion
(Cost) = -$647,803 VAC (Cost) = -$488,246
EAC (Time) = 185.4d EAC (Time) = 173.4d
VAC (Time) = -35.4d VAC (Time) = -23.4d
Schedule Performance
Index SPI (EV/PV) = .89 SPI = .95
Now That We Know…
• …how fast any given Agile Team is moving relative to
the size of a specific project or product backlog
• We can measure just how well those project or product-
level benefits are being delivered compared to plan
• Take a simple Cost/Benefit Analysis done as a means of
prioritization – a “Financial Benefit”
• Use of a CBA means the Benefit of revenue generation
or cost avoidance is important to someone
• So we better track it somewhere!
We Can Truly Show a PvA Benefit
Current date
ROI Line… says the sponsor thought the project would yield a $3M benefit at T+2 years
What Weakens These Capabilities?
• Org Level/Funding Approvers – no awareness of value
streams or prioritization using awareness of value
• PMOs – Take your own medicine with regards to
baseline measurement and general project monitoring
and controlling – both are REQUIRED
• Sponsors/Product Owners – Create and maintain
Product Management Plans
• Agile Teams – Stay true to the 12 Agile Principles at all
costs… Agile “Frameworks” are a distant second
Why Product Management Plans?
“On a long enough timeline, the survival rate for ‘everything’
drops to zero”
- Fox Pictures 2000
Know When To Hold em & Fold em
Idea Intro Growth Maturity Decline
Time
Product
ROI POC Project
Journey Mapping
MVP Project Done
Small Releases (always)
Migration to
Serverless Project
Regulatory-driven
Project Done
Start thinking about
the next generation
of technology for this
product!
POC Project
Journey Mapping
Think long and hard about
continuing to invest capital
in this product after this
point
MVP Project Done
Want to avoid the feared
“dual systems”… better
think about avoidance
LONG before you get to this
point
Without Product Management
Plans… all of the timing of this
becomes very unclear and
unpredictable
Thank You!
