Agile Project Management

MS Project Management

Muhammad Waseem PMP

[email protected]
03005257700
 Domain II
Value Driven Delivery

2
 Domain I Domain II Domain III

Agile Principles Value Driven Stakeholders

and Mindset Delivery Engagement

Define Positive Stakeholders

9 Tasks Value Needs
3 Tasks 2 Tasks
Incremental Stakeholders
Development Involvement
5 Tasks 3 Tasks

Avoid Potential Stakeholders

Downsides Expectations
3 Tasks 4 Tasks

Prioritization
3 Tasks
9 tasks
14 tasks
3
 Domain II - Value-Driven Delivery

What is value driven delivery?

• Projects are undertaken to generate value for businesses

• So, value-driven delivery should be the focus of the project

through out

• While making choices in project the focus should be on

options that generates business value.

4
 Domain II - Value-Driven Delivery
1. DEFINE POSITIVE VALUE - 3 TASKS
Task 1:
– Define deliverables by identifying units that can be produced
incrementally in order to maximize their value to stakeholders while
minimizing non-value added work.
Task 2:
– Refine requirements by gaining consensus on the acceptance criteria
for features on a just-in-time basis in order to deliver value.
Task 3:
– Select and tailor the team’s process based on project and organizational
characteristics as well as team experience in order to optimize value
delivery.

5
 Domain II - Value-Driven Delivery

2. AVIOD POTENTIAL DOWNSIDES - 3 TASKS

Task 4:
– Plan for small releasable increments by organizing requirements into
minimally marketable features/minimally viable products in order to allow
for the early recognition and delivery of value.
Task 5:
– Limit increment size and increase review frequency with appropriate
stakeholders in order to identify and respond to risks early on and at minimal
cost.
Task 6:
– Solicit customer and user feedback by reviewing increments often in order to
confirm and enhance business value.

6
 Domain II - Value-Driven Delivery
3. PRIOTORITZATION - 3 TASKS
Task 7:
Prioritize the units of work through collaboration with stakeholders in order to
optimize the value of the deliverables.
Task 8:
– Perform frequent review and maintenance of the work results by prioritizing
and maintaining internal quality in order to reduce the overall cost of
incremental development.
Task 9:
– Continuously identify and prioritize the environmental, operational, and
infrastructure factors in order to improve the quality and value of the
deliverables.

7
 Domain II - Value-Driven Delivery
4. INCREMENTAL DEVELOPMENT - 5 TASKS
Task 10:
– Conduct operational reviews and/or periodic checkpoints with stakeholders in
order to obtain feedback and corrections to the work in progress and planned
work.
Task 11:
– Balance development of deliverable units and risk reduction efforts by
incorporating both value producing and risk reducing work into the backlog in
order to maximize the total value proposition over time.operational reviews
and/or periodic checkpoints with stakeholders in order to obtain feedback and
corrections to the work in progress and planned work.
Task 12:
– Re-prioritize requirements periodically in order to reflect changes in the
environment and stakeholder needs or preferences in order to maximize the
value.
Task 13:
– Elicit and prioritize relevant non-functional requirements (such as operations and
security) by considering the environment in which the solution will be used in
order to minimize the probability of failure.
Task 14:
– Conduct frequent reviews of work products by performing inspections, reviews,
and/or testing in order to identify and incorporate improvements into the overall
process and product/service.
8
Value Based Analysis

Feature A Feature B

$5000
Business $3000
Benefit Business
Benefit

$1000
$4000 Cost To Build
Cost to Build

Cost Benefit Analysis

9
 Domain II - Value-Driven Delivery

• Assessing Value of the project

– Methods used to determine if the business should
be undertaken or done.
– Three methods are used for this:

1. Return on Investment (ROI)

2. Net Present Value (NPV)
3. Internal Rate of Return (IRR)

10
 Domain II - Value-Driven Delivery
RETURN ON INVESTMENT (ROI) T&T

• ROI means what return the business receives after committing

investment on annual basis
• Higher ROI value is better for the business
• For example ROI of 70% is less attractive than ROI of 125%
• Formula for ROI is (Revenue - Cost) / Cost

Example:
– Establishing cost for 12 months 100,000
– Revenue at the end of 12 months 120,000
– ROI (120,000-100,000)/100,000
= 2/10x100= 20%

11
 Domain II - Value-Driven Delivery

PRESENT VALUE (PV) AND NET PRESENT VALUE (NPV) T&T

This method is used to determine the Present Value of the revenue of the future:
• PV means present worth of the project after taking inflation or interest into
account
Example:
If the revenue from a project after 12 month is 100,000. Due to 10%
inflation its present value will be 90,000.

• NPV means the cost of setting up the project is deducted from the present worth
of the project
Example:
If the revenue from a project after 12 month is 100,000. And 50,000 was
spent in setting up the business. Then the NPV will be:
(100,000-50,000) = 50,000. Due to 10% inflation its net present value will be
45,000.
In both cases higher PV and higher NPV will better for the project.
12
 Domain II - Value-Driven Delivery
INTERNAL RATE OF RETURN (IRR) T&T
• The (IRR) is a rate of return used in capital budgeting to measure
and compare the profitability of investments.

• IRR tells us the rate of return the project will have over a given period
of time. It is also called the discounted cash flow rate of return.

• In the context of savings and loans, the IRR is also called the effective
interest rate. The term internal refers to the fact that its calculation
does not incorporate environmental factors (e.g., the interest rate or
inflation).
• IRR means expression of return on project in terms of interest rate
• Higher IRR is better for the project
• E.G. IRR of 10% is less attractive than IRR of 12.5%,13for instance
Domain II - Value-Driven Delivery

14
 Domain II - Value-Driven Delivery
T&T
CHARTERING
• Chartering in Agile is similar to the Develop Project Charter in PMBOK.
• However the level of details and assumptions is different.
• Agile Charters can be lightweight worksheets or fairly detailed documents.

• Typically they should answer W5H questions

1. What is the project about? A high level description of the project.
2. Why is it being undertaken? Business rational and requirement
3. When will it start and end? Start and end dates
4. Who will be engaged? Project participants and stakeholders
5. Where will it be done? Work site, location
6. How will it be undertaken? Approach, agile methods to be used

15
 Domain II - Value-Driven Delivery
T&T
VALUE STREAM MAPPING

• Value Stream Mapping is a lean manufacturing technique adopted by Agile

methods to reduce waste.
• It illustrates the flow of information required to complete the work.
• Involves creating visual maps of the process
• It is used to determine wastages in the process to improve efficiency
• Some example of wastes are:
• Queuing for elevator, rebooting computer after program crash, using
official stationery for drafts.

<diagram on next page>

16
 Domain II - Value-Driven Delivery
DELIVERING VALUE
Goal is to deliver value throughout the Agile project by minimizing waste and
maximizing value. Types of wastes are:
• Partially done work, extra process, waiting, defect, motion, useless
features etc

17
 Domain II - Value-Driven Delivery
T&T
VALUE STREAM MAPPING

18
 Domain II - Value-Driven Delivery
T&T

CUSTOMER-VALUED PRIORITIZATION
• Practice of letting the Customer and/or Product Owner to decide what is
more valued for themselves is Value based prioritization
• Should be facilitated by team by sharing and communicating information
• Team should be ever-ready to think out of the box and to experiment just
for this basic goal of achieving value for stakeholders
• Customer and or Product Owner should be deciding which functionality
should be implemented first based on the probable value associated with
those functionalities
• Projects should be justified based on the probable Value they bring to
stakeholders and customers

19
 Domain II - Value-Driven Delivery

PRIORITIZING VALUE T&T

Prioritization is a fundamental agile process.

To understand why, the second agile principle "Welcome changing requirements, even
late in development:‘
what actually happens when a new requirement is added to a fully loaded project?
How will they squeeze in the new work?
In effect, the customer is saying "I want it all!"
if the customer continuously prioritizing the backlog, then that new requirement is
simply inserted at the appropriate place in the backlog,
The lowest priority item drop off the list to accommodate the change.
Agile teams also use prioritization to confirm that they are delivering value.
At the end of each iteration, they sit down with the customer to review the backlog,
asking "Has anything changed?" and "Do we still want to work on feature B next?"
Any new priorities are captured in the backlog and revisited again
20 at the next planning
 Domain II - Value-Driven Delivery

PRIORITIZING VALUE T&T

• Agile teams also use prioritization for delivering value.

• At the end of each iteration, they team review the backlog, asking "Has anything
changed?"
• "Do we still want to work on feature B next?"
• Any new priorities are captured in the backlog and revisited again at the next
planning session.
• This helps ensure that we are continuing to make progress toward the desired
target.

21
 Domain II - Value-Driven Delivery
CUSTOMER VALUED PRIORITIZATION T&T

Customer Valued Prioritization is a method of prioritizing features to be included in

releases. Some of the schemes that are used for prioritization are:

• MoSCoW: Must have; Should have; Could have; Would have

• 100 point method: Stakeholders are given 100 points to distribute to various features

• Kano Analyses: Clarify customer preference in 4 categories. Delighters, Satisfiers, Dis-

satisfiers, and Indifferent. Features are selected based on feedback.

• Requirement Prioritization Model: Stake Calculate priority of feature based on benefit,

penalty, cost, and risk.

22
 MoSCoW
A simple prioritization scheme that uses:

• Must Have
• Should Have
• Could Have
• Would like to have, but not this time

… to prioritize user stories.

23
 Customer Value Prioritization
Building a child’s bike. Prioritize the features into ‘Must Have’, Should Have, Could Have

24
 Customer Value Prioritization
Building a child’s bike. Prioritize the features into ‘Must Have’, Should Have, Could Have

25
 Domain II - Value-Driven Delivery
T&T
RELATIVE PRIORITIZATION/RANKING
• Features are prioritized based on the business needs and the business
value of the feature.
• Relative prioritization provides a framework for deciding if and when to
incorporate changes.
• Question should be asked to the business: “What items are more
important?”

A
Minimum
B marketable release
C
D Cut off to meet
Budget/time

26
 Domain II - Value-Driven Delivery
T&T

PRODUCT ROADMAP

• Product roadmap is a visual overview of the product releases and

its main components.
• It is a communication tool that provide stakeholders with a quick
view of primary release points and intended functionality.
• It shows how the product will be developed and released

<diagram on next page>

27
 Domain II - Value-Driven Delivery
T&T
PRODUCT ROADMAP

28
 Domain II - Value-Driven Delivery

RISK ADJUSTED BACKLOG T&T

 Risks are anti-value.

 They take time and resources away from the Business Business
efforts that deliver value and threaten the feature feature
project benefits. Risk Risk
response response
 Risk mitigation and avoidance should be done
Business Business
early. feature feature

Business Selected
 Features that have higher risk score should be
feature
given lower priority.
Risk
response
 Create spikes to work on risks.

 Adjust backlog to include risks.

 Domain II - Value-Driven Delivery
AGILE CONTRACTING METHODS K&S
Level-3

• Agile Manifesto value, which ranks "Customer collaboration over contract

negotiation."

• Contracting in Agile is different from the traditional methods.

• In traditional methods the Scope or functionality are fixed and time and
cost will be adjusted to complete the scope or functionality.

• In agile methodology resources and time are fixed and scope or

functionality is flexible.

• So the number of features to be done in an iteration will depend on the

time, recourses, and output of the team.
30
 AGILE CONTRACTING METHODS
Inverted Triangle Model

Scope or
Functionality Resources Time

Fixed
Agile

Traditional
Variable

Time Cost Scope or

Functionality

31
 Domain II - Value-Driven Delivery
K&S
Level-3
AGILE CONTRACTING METHODS
Example of contracts:

• Contracts used in Agile need to consider the aspect of flexibility of scope.

• Hybrid (Time and Material) type of contract could be suitable.
• Customized contract may be considered which have more flexibility to
suite requirement of project.

32
 Domain II - Value-Driven Delivery
K&S
Level-3
AGILE TOOLING

Agile teams use low-tech, high-touch tools such as task boards as their
primary method of tracking and reporting value. These tools often take the
form of information radiators, which are large charts displayed in prominent
places.

33
 Domain II - Value-Driven Delivery
Agile Tooling
TASK AND KANBAN BOARDS T&T

• Task and Kanban boards can help deliver value on agile projects. These
are simple low tech, high touch displays that provide basic information on
the progress. These can be used instead of Gantt Charts

Work In
To Do Done
Progress
Stock Stock Data
search update base
Item Amend scheme
details order
Create
Order Process Order
list order

Order Log-in
refund
34
 Domain II - Value-Driven Delivery
WIP LIMITS T&T

• Work in Progress (WIP) is the work that has been started but has not
been completed.
• Having more WIP is not good for the project as it increases waste.
• WIP consumes capital.
• WIP can also hide bottle necks in the processes and workflow
• Agile aims to limit the WIP.
• This is done through Kanban Boards.
• Limits of WIP is written in the WIP section of the board.

35
 Domain II - Value-Driven Delivery
WIP LIMITS T&T
WIP LIMIT

Work In
To Do Done
Progress (3)
H F C

G E

B
I D

J A

36
 Domain II - Value-Driven Delivery
WIP LIMITS T&T

• Map WIP Limit : Work Faster, Increase Specialist

• Decrease Lead Time

• Reduce Idleness

• Protect Healthy Culture

• identify bottlenecks and maximize throughput

37
 Domain II - Value-Driven Delivery
K&S
Level-1
INCREMENTAL DELIVERY

• Incremental delivery primarily means Higher

increment delivery of Value 2

• Agile approach suggests that the

functionality should be delivered in Lower
small stages to give margin to the 1
stakeholders, customers and product
owners to suggest healthy changes

38
 Domain II - Value-Driven Delivery
K&S
INCREMENTAL DELIVERY Level-1

• Customer is given liberty, chance Higher

and motivation to learn more
about its requirements and 2
participate more specially after
seeing the initial version of the
delivered product i.e., tempting Lower
and welcoming customer to help
in improvements by suggesting 1
changes

• Simultaneously this incremental

delivery helps the team-members
to respond to the most expected
change through adaptive planning
with little or no re-work or scrap
39
 Minimal Viable Product (MVP)
• The term "minimal viable product," or MVP
(also known as "minimal marketable feature,"
or MMF) refers to this package of functionality
that is complete enough to be useful to the
users or the market, yet still small enough that
it does not represent the entire project.'

40
 Minimal Viable Product (MVP)

MPV Additional Releases

Pencil
Car
ATM

41
 Minimal Viable Product (MVP)
Pencil
MPV Additional Releases

Makes a mark on paper Eraser

Can be held in one hand Visually attractive
Self-sharpening or continuous lead
Comfortable

42
 Minimal Viable Product (MVP)
Car
MPV Additional Releases

Transport occupants from point A to point Air conditioner and heater

B Fuel efficient
Road Legal Aesthetically pleasing
SAfe Sporty performance
Comfortable

43
 Minimal Viable Product (MVP)
ATM
MPV Additional Releases

Dispenses money Accepts cash deposits

Displays balance Accepts check deposits
Protects against attack Remembers user's favorite withdrawal
Keeps user information secure amounts

44
 Domain II - Value-Driven Delivery
K&S
Level-1

FEEDBACK THROUGH PROTOTYPE, SIMULATIONS, AND DEMONSTRATION

• Demonstration of functionality are critical to confirming success on

software projects.
• Software is intangible and difficult to reference.
• In most of the cases the systems being built are new and will not be
repeated.
• The users should be able to see something to determine if the systems
meets the functionality requirements.
• Term I K I W I S I (I Know It When I See It) is often used in software
industry for getting feedback.

45
 Domain II - Value-Driven Delivery

T&T
TRACKING AND REPORTING VALUE

• Various methods are used to monitor the rate at which features and value
are being delivered to make sure that the project is on track.
• These methods include:

– Agile Earned Value Management

– Cumulative Flow diagrams
– Risk burn down graphs
– Task and Kanban Boards
 Domain II - Value-Driven Delivery

T&T
AGILE EARNED VALUE MANAGEMENT

• In this method cumulate cost of the project is calculated and is plotted as

an S-curve.
• Actual cost is plotted to show the present cost of the projected.
 Domain II - Value-Driven Delivery

EARNED VALUE MANAGEMENT T&T

S-Curve Graph
 Domain II - Value-Driven Delivery

T&T
CUMULATIVE FLOW DIAGRAMS (CFD)

• Cumulative flow diagrams are tools for tracking and forecasting agile
projects
• CFDs can help us gain insight into project issues, cycle times, and likely
completion dates.
• Different sections of the diagrams can be used to identify potential issues.
 Domain II - Value-Driven Delivery

CUMULATED FLOW DIAGRAMS (CFDs) T&T

Not started

Completed
Started
 Domain II - Value-Driven Delivery

• FREQUENT VERIFICATION AND VALIDATION

• Agile techniques are designed to resolve problems at
earlier, before they grow bigger and move up the cost
of change curve.

• Like the old saying, "A stitch in time saves nine," agile
uses regular testing, checkpoints, and reviews to
address problems before they get bigger.

• This practice is referred to as frequent verification and

validation.

51
 Domain II - Value-Driven Delivery

T&T
RISK BURNDOWN CHARTS

• Risk are anti-value as they waste time and produce not value

• High-risk activities should be into earlier iterations of the project and

incorporate mitigation actions into the backlog.

• Risk severity is determined as = Risk probability x Risk impact

• Risk and prioritized and response strategy developed

• Risk progress is tabulated on Risk Burn Down Graphs

 Domain II - Value-Driven Delivery
RISK BURN DOWN CHARTS T&T
 Domain II - Value-Driven Delivery

T&T
TASK BOARDS AND KANBAN BOARDS

• Tasks boards and Kanban boards are a very good visual tool for tracking
and reporting value of the project.
• As they are highly visible they can show how the work is progressing over
in the project.
 Domain II - Value-Driven Delivery
TASK AND KANBAN BOARDS T&T
 Domain II - Value-Driven Delivery
TASK AND KANBAN BOARDS T&T
Questions/Answers
Test
Thank you

59