Studies show approximately 97 percent of organizations are now practicing agile development methods. Agile is very popular. Measurement performance has been and still is lacking for large IT projects. Texas bill (HB) 3275 (2017) requires state agencies to improve measuring and monitoring of large IT projects. IT project performance measurement is getting attention.
EVM is a widely applied effective tool in the Department of Defense (DOD) and construction industries for measuring project progress against the baseline. A google search shows a number of articles on a combined or integrated Agile and EVM approach. I did not see any articles on the success rate of this hybrid method but I would guess it is not very high. I propose using a standard EVM method to measure performance on a large IT project.
The key to implementing EVM on large IT projects is to establish a baseline for the entire project. EVM performance measurement needs the baseline to work. The other important consideration is to use the rolling wave approach and structure it to address each iteration of the software build.
This paper explains what a baseline and rolling wave are and how to implement them with EVM to measure project performance.
IT PROJECT DILEMMA
Agile is a project management methodology that uses short development cycles called “sprints” to focus on continuous improvement in the development of a product or service. Scrum is an Agile project management methodology involving a small team led by a Scrum Master, whose main job is to clear away all obstacles to the team completing work. Work is done in short cycles called sprints, and the team meets daily to discuss current tasks and roadblocks that need clearing.
This contrasts sharply to the more traditional waterfall style approach that fixes the project scope upfront, requiring the extensive creation of requirements, analysis and design documentation before development can get started. This traditional approach has a baseline
The Agile project management approach does not have a baseline and therefore is not suitable for EVM. This is the dilemma.
HOW DO YOU CREATE A BASELINE?
A baseline is a project Integrated Master Schedule (IMS) that has been reviewed, approved, and baselined using the scheduling tool. Only the customer in writing can change the baseline. To create a baseline, a Work Breakdown Structure (WBS) must be established. The WBS organizes the contract scope of work into manageable tasks called Work Packages (WPs). Typically, the WP is level 3 on a WBS but it can be lower level also. A WP contains the: task description; budget; schedule; and the EVM accruement technique. Each WP has a dictionary that defines the WP details. Each WP has a list of activities under it. These activities must be completed before the WP can be closed.
The project IMS is based on WPs and their activities. Activities are linked to other activities to define the schedule logic. Work is done at the WP level. Time card charges are made at the WP level. Earned Value (EV) is accrued at the WP level. Progress on the project is compared to the baseline to measure the performance.
ROLLING WAVE
The rolling wave planning process requires detailing of the baseline plan only as far into the future as reasonably can be defined. Depending on the contract type, this period is normally 3 to 6 months in to the future. This leaves the remaining work to be grouped into what’s called Planning Packages (PPs). A Planning Package represents future work that cannot be defined into specific work packages or for which there is insufficient information to make detail planning practical at this time. Near the end of the first period, the appropriate PPs are detailed out. This process continues to the end of the project. This approach accommodates software development whereby each period can be a software iteration.
This type of approach is similar in some respects to the “sprint” approach. But the rolling wave process has some structure to it and allows a baselined to be established for EVM purposes.
BENEFITS OF EVM ON An IT PROJECT
Finance issues a monthly EV report that includes the performance of each WP. It is color coded (red-poor; yellow-caution; green-good). It is easy to identify the poorly working WPs early to allow maximum time to understand the problem and resolve it.
EVM has been proven to be an effective project management tool. EVM must be setup and executed properly. This means you need a good WBS, WPs, and IMS.
The biggest benefit is early identification of problem WPs providing maximum time to understand the problem and resolve it. It also brings some structure to the project.
SUMMARY
A good performance measurement method for IT projects does not exist today but many agencies and others are working on it. I propose implementing EVM on large IT projects is the best way to proceed for this problem. Using the rolling wave planning approach, a baseline can be established based on as little as 3 months of detail planning and scheduling with planning packages defined for future work. This approach facilitates different iteration of the software build. This method assumes a WBS and WPs are created. Once the baseline is in place, EVM can be implemented for project progress against the baseline. Detailed and accurate performance measurements then can be made.
I have worked on large complex DOD projects that included a large percentage of software generation. EVM was used to measure performance and it worked well. As a result, I believe EVM is the most effective approach for performance measurement for large IT projects.
Agile is suited for small IT projects and the best choice to use.
Bio:
Currently John is an author, writer and consultant. He authored a book entitled ‘Project Risk Management. It went on sale on Amazon in August 2019. He has presented several Webinars on project risk management to PMI. He writes a weekly column on project risk management for CERN. John also writes monthly blogs for APM. He has conducted a podcast on project risk management. John has published numerous papers about project risk management on LinkedIn.
John earned a BS in Mechanical Engineering and MS in Engineering Management from Northeastern University. He has extensive experience with commercial and DOD companies. He is a member of PMI (Project Management Institute). John has managed numerous large high technical development programs worth in excessive of $100M. He has extensive subcontract management experience domestically and foreign. John has held a number of positions over his career including: Director of Programs; Director of Operations; Program Manager; Project Engineer; Engineering Manager; and Design Engineer. He has experience with: design; manufacturing; test; integration; subcontract management; contracts; project management; risk management; and quality control. John is a certified six sigma specialist, and certified to level 2 EVM (earned value management).https://projectriskmanagement.info/
If you want to be a successful project manager, you may want to review the framework and cornerstones in my book. The book is innovative and includes unique knowledge, explanations and examples of the four cornerstones of project risk management. It explains how the four cornerstones are integrated together to effectively manage the known and unknown risks on your project.