AGILE

PROJECT
MANAGEMENT
Instructor: Barb Waters, MBA, PMP
Session 2

Class will begin at 11:00 am Eastern Time

Follows one of the four Agile values
“Individuals and interactions over processes and
tools”
Understand personal motivation of each team
member
Align their tasks accordingly
 VS.

Communication, purpose, people-focused

“value added” motivators
Leadership

Processes, tasks, business-focused

Management
“the necessities”
CORE DUTIES
• Serve as a buffer to prevent interruptions
• Remove roadblocks
• Communicate the product vision
• Provide essential resources
• Tools
• Resources
• Rewards
• Encouragement
12 PRINCIPLES
• Learn team member needs and motivations
• Understand project requirements
• Act in the best interest of both the team and the
project
• Encourage accountability for both wins and losses
• Understand the project vision and objectives
• Align behavior with the vision
• Serve as a role model for desired behavior
• Recognize the value of team conflict as a path to
buy-in
• Be honest and ethical
• Ethics is integral, not an add-on
• Reflect in order to make improvements
• Think backwards to anticipate risks and obstacles
• Honesty
• Forward-looking
• Competent
• Inspiring
 ENGAGING STAKEHOLDERS IN AGILE PROJECTS

• Agile community
• Relies on cross-functional teams
• Stakeholders
• Internal and external
• Development team
• ScrumMaster
• Product Owner
• Customer
• End users
• Anyone who can impact, or be impacted by, the project
ENGAGING
STAKEHOLDERS

Keeping stakeholders committed

requires:

• Senior management support

• Training key stakeholders on
technologies and processes
• Flexibility
• Accept customer representatives

Engagement critical in every phase

STAKEHOLDER COLLABORATION
Stakeholders are not “managed”
• Collaboration
• Servant leadership/stewardship
• Not top-down

 ✓
IDENTIFYING STAKEHOLDERS
Internal Stakeholders External Stakeholders

• Work for organization • Clients or customers outside

• Executive team organization
• Developers • Customer
• ScrumMaster • End users
• Operations (DevOps)
Product Owner

Missed stakeholders is a project risk

EDUCATING AND
ENGAGING
STAKEHOLDERS
Stakeholders may:
• Not understand Agile
• Not understand their role
• Be overwhelmed with work
• Disengage or not participate if not
accountable

Stakeholder levels of
commitment:
• Committed
• Reluctant to commit
• Enthusiastic only at beginning (short
iterations help with this)
STAKEHOLDERS AND VISIBILITY

Short iterations
Visibility
• Visibility and transparency
• Frequent meetings and demonstrations

Improved communication
• Ongoing dialogue
• Continuous feedback
• Change requests
• Issues
Agile

Traditional
COMMON CONCERNS

What if I It feels like

don’t get the management is
What does this forcing this on
features I What if
have to do with us.
need? this fails?
me?
DIFFICULT
STAKEHOLDERS
%*#&!
May impede the project
Require special handling
• Shield the team
• Emotional intelligence skills
• Interpersonal skills
• Escalate
Establish a process during planning
ScrumMaster or
Project Manager
 AGILE VALUES AND PRINCIPLES
• Stakeholder values
• Product owner prioritizes the product backlog to
align to stakeholder values
• Deliver value early
• Demonstrate and gather feedback
• Agile values
• Respect
• Welcome different viewpoints
• Seek consensus
• Courage
• Welcome feedback
• Practice transparency
 ? ? CREATING THE
? ? PRODUCT VISION
• Interview stakeholders
• Focus on how a product adds value
• Motivates the development team
Why you’re building a product
Benefits of product
Since scope is evolving it is important to share an
understanding of what is being created
Definition of Done (DoD)
“Gulf of evaluation”
IMPORTANCE OF A SHARED PRODUCT VISION
MANAGING
STAKEHOLDER
EXPECTATIONS
• Scope is evolving
• Need shared vision
• Definition of Done
• Tools for shared vision
• Shouldn’t take longer than an elevator ride (2 min)
• Helps to create the charter

For: Customer

Who: Need or problem

Our: Product or service

Provides: Unique features or

benefits
As opposed to: Competitor product

We: Differentiator

For customers who need immediate answers to their questions, our client
support includes 24/7 live coverage.
Unlike the average company’s 24-hour email response, we are always
here to take your call.
 PRODUCT VISION BOX

Front of the box

• Product name
• Relevant graphic Click and View
• Key benefits Movies on Demand

Back of the box

• Detailed product description • Largest library of titles
• Product functional requirements
• Suggested titles by user profile
• Pause subscription feature
 TWEET

• Stakeholders describe objective using a

limited number of characters
• 280 characters or less
• High-level understanding of project
• Helps to create the charter
Helps to avoid stalling at 95% (just one
more thing)
Also known as “done done”
Use a separate DoD for each level of the
project work
Makes progress easier to assess
Prevents disagreements and scope creep
Software Deliverable Non-technical Deliverable
(app update) (online training video update)
Done Criteria Done Criteria
Tests written and passed Audio and video passed QA
Integration testing passed Transcripts written and proofed
Browser testing passed Uploaded to learning platform
Accessibility testing passed Browser testing passed
Code peer reviews completed Accessibility testing passed
Mobile device testing passed Mobile device testing passed
Release notes written Marketing announcement published
Acceptance criteria met Acceptance criteria met
• Should accompany a user story

• Helps to translate the story into tasks

Differences Acceptance Criteria Definition of Done
Scope Specific (user story) Applies to all work

Purpose Meet user needs Team’s shared vision

Features Functional features for users Includes non-functional and quality

requirements

Similarities • agreed to as a team

• updated as new learnings come to light
• testable
• clear
• concise
• Green on the outside, red on the inside

• Lack of transparency

• Based on a “surrogate” measure of done

• Acceptance criteria helps to avoid this

• Agile relies on empirical data

Short, simple descriptions of a feature
Told from the user’s perspective
When large or complex, can be called “epics”

Sentence structure:
“As a role, I want functionality, so that business benefit.”

Example:
“As a customer, I want my credit card information to be
stored, so that I save time when checking out.”
Keep them simple
• Gather feedback
• Experiment
• Use storyboards
• Use annotations
• Provide explanations

Depict user stories visually

• Wireframes
• Form of modeling
• Better solution understanding
• Provide format for feedback
• Ensure stakeholders on same page
• Provide blueprints for design visuals
• Provide technical requirements understanding
 INVEST CRITERIA

Independent - developed in any order

Negotiable - discussions with product owner
Valuable - justify the work
Estimatable - quantify the effort
Small – reliable estimates of 4-40 hours of work
Testable – measure progress and acceptance

I N V E S T
• Quick reminder of stakeholder needs
• Composite
• Represents majority of actual users
• Not a replacement for stakeholders
• Focus on value and priorities

Mario is an employee of ABC Company. He must use his ID

badge to access his work computer. For security reasons, the
computer automatically logs users out after 5 minutes of
inactivity. Mario would like to remain logged in while he is
sitting at his desk.
PERSONAS: BEST
PRACTICES
Best practices:
• Based on reality
• Specific
• Have defined goals
• Include negative personas
• The end user you are not designing for
• Ex: the user who always cancels after the free trial
Ideally 3 or less, or the product may become confusing
USE CASES vs USER STORIES
Similarities
• capture features of the system
• used by the development team to create the best solution
• used to organize and categorize requirements
• used during testing to ensure requirements have been met

Use Cases User Stories

Purpose: detailed requirements of a user/system interaction Purpose: high-level requirements, details may evolve
• significantly greater detail than a user story • shorter statement about what a user wants from the system
• specifications can be many pages long • includes the business value associated with the feature
• may need to use a requirements management system • concise enough to fit on a sticky note or index card
• no stone left unturned • simple description of the feature itself
 WIREFRAMES
• Visual sketch or example of product
• Non-functional
• Represents the idea
• Confirm understanding
• Low-tech prototype
WORKSHOPS
Meet to work and make decisions
• Clear purpose
• Specific goals
All attendees participate
Cross-functional
• Diverse viewpoints
• Avoid “group think”
EFFECTIVE DECISION-MAKING
IN AGILE
Agile decisions must be timely
?
All relevant stakeholders should be involved in process

Decision framing:
• Sets the stage
• Who will make the decision
• What values will be considered WHAT

?
?
Works when:
• All opinions heard and discussed WHO

• Everyone supports the decision, even if not in full agreement

 EFFECTIVE DECISION-MAKING IN AGILE
Decision gradient
• Support expressed along a continuum
• Voting system, each vote is plotted for discussion
• Five option intervals:
• In favor
• OK with reservations
• Mixed feelings
• Disagree but will commit
• Veto
In favor, but with some concerns Disagree but will cooperate

In favor Mixed feelings Veto

 AGILE PROJECT CHARTER
• High level scope detail, less than a
traditional charter
• Focus on methodology
• “how” vs. “what”
• Flexible document open to adjustments
• Authority to proceed with project work
 ELEMENTS OF AN AGILE PROJECT CHARTER

• Project goal or purpose

• Methodology or approach
• Authorization from the sponsor
• W5H
• Who: stakeholders
• What: high-level scope and objectives
• Where: location and geographical logistics
• When: high-level schedule
• Why: business case
• How: methodology/approach
Help organizations manage risks and resources

Firm fixed-price contracts are not

suitable for Agile projects
• Modified fixed price contracts
• Flexibility to make changes
Changes for free
• Customer must be highly involved with the project
• Reprioritize backlog
• Cancel the contract for a % of remaining work
Customized contracts
• Combination of different contracts
 A $5,000
Helps with accurate estimates
Fewer unknowns F $3,500
Reduces need for contingency funds
C $10,000
Allows for progressive elaboration
• Re-estimate based on new information
J $7,500
• Evaluate new risks

D $2,500

H $5,000 Can re-estimate later

 GRADUATED FIXED PRICE CONTRACT

Financial incentive to finish early Early

$165/hour
• Fewer hours
• Higher rate
• Paid sooner
On Time
Late $140/hour
• More hours
• Lower rate
Late
$115/hour

Graduated fixed price contracts

were introduced by Thorup and Jensen
AGILE VALUE PROPOSITION
Visibility Adaptability

Agile

Traditional

Business Value Risk

 DELIVER VALUE EARLY

Over time, things change

• Threats can appear
• Opportunities can fade Agile is characterized by frequent, short iterations
• Benefits can decrease
Deliver before things change

Business value is recognized sooner

• Maintain stakeholder engagement
and confidence
• Demonstrate understanding of the needs
• Prove you can deliver
• Collect feedback and quickly adapt
 BUSINESS VALUE AND EXPECTED BENEFITS

Tangible Intangible
• Monetary assets • Good will
• Fixtures • Brand recognition
• Stockholder equity • Public benefit
• Utility • Trademarks
• Can be quantified • Difficult to quantify

Organizations obtain business value from project investments.

 PROJECT SELECTION AND JUSTIFICATION
• Return on Investment (ROI)
• Net Present Value (NPV)
• Internal Rate of Return (IRR)

Project A Project B Project C

 RETURN ON INVESTMENT (ROI)

•A higher ROI is better

Value Now – Initial Investment = ROI

Initial Investment

$2,500 – $1,000 = 150%

$1000
 PROJECT CASH FLOW
Project Cash Flow
$30,000

$20,000

$10,000

$0
Week 0 Week 2 Week 4 Week 6 Week 8 Week 10 Week 12 Week 14 Week 16 Week 18 Week 20

($10,000)

($20,000)

($30,000)

Income Expenses Net Cash Flow

 NET PRESENT VALUE (NPV)

• Takes the time value of money into account

• Expresses profitability as a dollar amount in today's terms

If you will receive $5.00 sometime in the future, what

are you willing to invest today?

Wait 20 years Wait 5 years

PRESENT VALUE

Discount Net Present

Year 0 Year 1 Year 2 Year 3
Rate 10% Value

Inflow 1 $300,000 $300,000

Inflow 2 $300,000 $272,727

Inflow 3 $300,000 $247,933

Inflow 4 $300,000 $225,563

NET PRESENT VALUE (NPV)
$500,000 Initial Investment on the Project
10% (Discount Rate)

Year Cash Flow

0 -$500,000 (Initial investment shown as a negative)
1 $300,000

2 $300,000

3 $300,000

• Your organization injects $500,000 at the start of the project.

• Your customer pays $300,000 annually.
NET PRESENT VALUE (NPV)
$500,000 Initial Investment on the Project
10% (Discount Rate)

Initial Cash Flow 1 Cash Flow 2 Cash Flow 3

Investment (1 + Discount Rate)1 (1 + Discount Rate)2 (1 + Discount Rate)3
300,000 300,000 300,000
-$500,000
(1.10)1 (1.10)2 (1.10)3
300,000 300,000 300,000
-$500,000
1.10 1.21 1.33

-$500,000 272,727.27 247,933.88 225,563.91

NET PRESENT VALUE (NPV)

Year Cash Flow Present Value The cash flow over three
0 -$500,000 -$500,000 years will be $746,225.06 and
1 $300,000 $272,727.27 our initial investment is
2 $300,000 $247,933.88 $500,000. Thus the NPV is
3 $300,000 $225,563.91 $246,225.06.
Net Present Value = $246,225.06
EXAMPLE: PROJECT SELECTION
You can only charter one project. Which project is most desirable?

Project A Project B Project C

Investment = -500,000 Investment = -300,000 Investment = -400,000

Payback period 3 years Payback period 2 years Payback period 2 years
IRR 29% IRR 10% IRR 30%
NPV = $88,280 NPV = $21, 995 NPV = $160,091
INTERNAL RATE OF
RETURN (IRR)
• Used to measure the profitably of an
investment
• Expressed as a percentage
• Project with the highest IRR should be
undertaken

A
IRR 10%
B
IRR 5%
C
IRR 2%
 MONITORING COSTS: S-CURVE
• Sharp increase represents the transition
from planning to executing Cost
• Addresses budget but not schedule

Cost Baseline
Typical
Spending Curve

Time
 Monitoring the Schedule
An Integrated Master Schedule, or IMS, contains project activities, events, and
milestones.
• Can be used to show interproject dependencies, which are dependency relationships between two
or more different projects in an organization
• Can be visually depicted using a flow chart, such as a Gantt chart

Bar Chart (Gantt Chart)

 EARNED VALUE MANAGEMENT:
AGILE CONSIDERATIONS
• The plan must be up to date
• Frequent scope changes
• Work is incremental
• Schedule works in iterations
• Completed work doesn’t necessarily = value
• Quality
• Stakeholder engagement
• Benefits of EVM
• Leading metric
• Visual tool
• Actual project costs
• Estimated backlog in story points
• Release plan
• Assumed team velocity
 EARNED VALUE MANAGEMENT:
TRADITIONAL PROJECTS
Cost
• Measures performance $1,000,000 ---
• Cost
Actual Cost (AC)
• Schedule
$750,000 ---
• Planned Value (PV) Earned Value (EV)

• Actual Cost (AC) $500,000 ---

• Earned Value (EV) Planned Value (PV)

$250,000 ---

$0 ---
Time

In traditional EVM the baseline for the entire project is established at the project start. Performance is compared to the plan.
 EARNED VALUE MANAGEMENT
AGILE PROJECTS

• Progress is measured
in story points
• More frequent
monitoring
• Assumed team
velocity
 KEY PERFORMANCE INDICATORS (KPIs)

lagging
leading

What has already happened Earned Value Management (EVM)

• Includes forecasts
• Rate of progress • Allows realignment to the budget and
• Remaining work schedule
• Profit & Loss (P&L) reports • Likely completion date and remaining costs
 RISK MANAGEMENT
• Any uncertainty Agile
• Threat Traditional
• Opportunity
• Agile focuses on threats
• Known as “anti-value”
Risk
• Takes time and resources from the project
• Agile value proposition
• Risk drops quickly in Agile
• Rapidly identified and addressed
 RISK IDENTIFICATION

Past project risk logs

Subject Matter Experts

Lessons Learned

Stakeholders Industry risk profiles

 RISK MANAGEMENT
• Pre-mortem activity:
• Step 1: brainstorm and document (ways we can fail)
• Step 2: identify possible reasons
• Step 3: rank reasons
• Step 4: create solutions
RISK-ADJUSTED BACKLOG
Based on Expected Monetary Value (EMV)
EMV = Probability x Impact

Original Product Backlog Risk-adjusted Backlog

A A
F F
C Risk response

J C
B J
D B

D
 EXPECTED MONETARY VALUE (EMV)

• Quantitative analysis of risk

• Expected Monetary Value (EMV)
• EMV = Probability x Impact

Example:
Risk has a 25% probability of happening.
If it does, it will cost the project $5,000.
EMV = .25 x $5,000 = $1,250
Probability-impact Priority rating Threats
combination
.90 .09 .23 .45 .68 .81

Low --------------------High
Low/Low Low

Low/Medium Low .75 .08 .19 .38 .56 .68

Probability
Low/High Low-Medium .50 .05 .13 .25 .38 .45
Medium/Low Low
.25 .03 .06 .13 .19 .23
Medium/Medium Medium

Medium/High High .10 .01 .03 .05 .08 .09

High/Low Low
.10 .25 .50 .75 .90
High/Medium High

High/High Very High Impact

Low -------------------------------------High
 REGULATORY COMPLIANCE

• Counter to the Agile value of “working software over comprehensive

documentation”, but necessary

•HIPAA: Health Insurance Portability and Accountability Act, healthcare patients’ data security.

•Sarbanes-Oxley Act (SOX): Maintain financial records for seven years. Required for U.S.
company boards, management personnel and accounting firms.

•GDPR: General Data Protection Regulation, protects citizens in the European Union (EU) from
data breaches. Applies to all companies processing personal data for people residing in the EU,
regardless of company location.

•FISMA: Federal Information Security Management Act of 2002 All federal agencies are
required to develop data protection methods.

• Organizational standards and policies

HOW TO MANAGE REGULATORY COMPLIANCE WORK

Ongoing with development After product development

•Adapt to new regulations quickly •Can’t react as quickly

•May need to repeat tests of •Prevents rework
previous work (rework)

Hybrid

•Test important components now

•Test entire product later
•Catch big issues
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