DoD EVM POLICY Using EVM and Agile Together

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Agile in Govt Summit April 20, 2017 APPROVED FOR PUBLIC RELEASE DISTRIBUTION 1 DoD EVM POLICY Using EVM and Agile Together Mr. John McGregor PARCA Deputy Director for EVM

2 Agenda PARCA EVM and Agile Questions Managing the Work Recap

OSD AT&L PARCA Organization and Guidance APPROVED FOR PUBLIC RELEASE DISTRIBUTION 3

4 PARCA Director, Performance Assessments and Root Cause Analyses (PARCA) Mr. Gary R. Bliss Mr. John McGregor Mr. Dave Cadman Dr. Peter Eggan Dr. Philip Anton Deputy Director for Earned Value Management Deputy Director for Root Cause Analyses Deputy Director for Performance Assessments Deputy Director for Acquisition Policy Analysis Center PARCA was brought into existence via the reforms in the Weapon Systems Acquisition Reform Act (WSARA) of 2009

PARCA EVM Division APPROVED FOR PUBLIC RELEASE DISTRIBUTION 5

DoD EVM Policy Guidance Provides overview of relationship between Agile and EVM in DoD Provides the overarching DoD interpretation of the 32 EVMS Guidelines APPROVED FOR PUBLIC RELEASE DISTRIBUTION 6

7 OMB Update of OMB Capital Programming Guide provides link between EVM and Agile: EVM is not tied to any specific development methodology and does not prevent the use of other risk management techniques such as agile development. EVM and agile development are complementary and can be used on the same project. Agile development can be used to incrementally deliver functionality to the customer while EVM provides a standard method for measuring progress.

Questions on Agile Management and Earned Value Management APPROVED FOR PUBLIC RELEASE DISTRIBUTION 8

9 How does an IBR differ when using Agile with EVM? How does a PM determine if a baseline is achievable? What are the key questions to ask? How are Agile metrics used to underpin EVM performance? EVM and Agile How does Agile status manifest in performance status, analysis, and variance reporting?

10 Managing in an Agile Environment How does program management change in an Agile environment? Has anyone worked on EVM and Agile on the same contract? What are the benefits of using EVM in an Agile environment? What is the Government s role when Agile is implemented? Are there any implications using EVM within an Agile environment that should be addressed in DoD EVM System or other Guidance?

Organizing, Planning, Measuring, and Change Management APPROVED FOR PUBLIC RELEASE DISTRIBUTION 11

12 Managing the Work - Develop and maintain relationship between Agile backlog and Work Breakdown Structure (WBS) - Planning and scheduling with Agile can align to EVM System guideline criteria; Agile underpins IMS - Agile system must support the EVMS, demonstrating that all objective technical completion criteria have been met - Agile product backlog, at the feature level (i.e., work package) or higher, have an assigned budget under baseline control

13 EVM and Agile both support effective and proactive program management Planning, forecasting, and estimating are large parts of both disciplines Change control, while not identical between the disciplines, is crucial to the reliability of performance metrics Key is linkage with completion of technical criteria Recap

14 Thank You! PARCA EVM Website: http://www.acq.osd.mil/evm/ PARCA EVM Email: osd.dodevm@mail.mil PARCA Acquisition Exchange Program (AEP) provides a unique career-development experience for high-caliber Government civilians or military personnel interested in acquisition and/or EVM. http://www.acq.osd.mil/evm/aep.program.html

Additional Information / Reference APPROVED FOR PUBLIC RELEASE DISTRIBUTION 15

EVMS Guidelines APPROVED FOR PUBLIC RELEASE DISTRIBUTION 16

17 Agile Terminology There are many different implementations of Agile, so for ease of discussion the following terms will be used: Feature A clearly defined technical work scope requirement of an Agile project. Features are decomposed by the development team into Stories Stories Individual pieces of work scope that can be completed within a Sprint. Stories are defined by the development team as a result of the decomposition of Features. Sprint A fixed time box for development which results in a working increment of software. Sprints are usually 2 to 4 weeks in duration. Story Points A measure of a Story s estimated value as perceived by the development team. The number of Story Points is an abstraction of the effort, complexity, and risk of the Story.

18 Earned Value Organizing the workscope & teams in a product oriented, hierarchical manner Organizing Develop and maintain relationship between Agile backlog and Work Breakdown Structure (WBS) Agile teams utilizing a product backlog Agile Methodology

Events Drive Schedule APPROVED FOR PUBLIC RELEASE DISTRIBUTION 19 Priority Drives Schedule Definition of Work Scope From Appendix B of MIL-STD-881C

20 Earned Value Planning work in the baseline and IMS, timephased in a rolling-wave, 6 month window Planning & Scheduling Planning and scheduling with Agile can align to EVM System guideline criteria System requirements decomposed into capabilities, features, and stories thru sprints Agile Methodology

Time Phasing and Rolling Wave Planning APPROVED FOR PUBLIC RELEASE DISTRIBUTION 21

22 Earned Value Progress tied to scope completion based on quantifiable backup information/data Measuring Progress Agile system must support the EVMS, demonstrating that all objective technical completion criteria have been met Progress based on accomplishment of feature acceptance criteria Agile Methodology

23 Task Completion and Measuring Progress Task Completion Drawings Completed Lines of Code Written Work Products Produced Reviews completed Agile is tailormade for measuring progress this way! Measuring Design Effectiveness Critical TPM Achievement System Capabilities Met Quality of Work Products System Under Review Acceptable Progress is measured by effectiveness of outcomes to the end user

24 Earned Value Changes follow rules for work authorization, baseline management, and change control Baseline Maintenance Agile product backlog, at the feature level (i.e., work package) or higher, have an assigned budget under baseline control Backlog maintenance is critical to the effective management of an Agile program Agile Methodology

25 Change Control Sprint 1 Sprint 2 Product Backlog Story 1A Story 1B Story 1C Story 1D Story 1E Story 1F Story 1G Feature 1 Feature 1 is 100% complete Feature A Feature B Feature C Story 2A Story 2B Story 2C Story 2D Story 2D Story 2E Story 2F Story 2G Feature 2 Stories A,B,C,E, and F completed; 2D and 2G returned to Backlog Story 2D Feature E Story 2G Fixed time boxes (i.e., Sprints) force incomplete work to be put back on the product backlog or rolled over to next Sprint Forecasting and change control processes are required to maintain EVM baseline as items are returned to Product Backlog and used in subsequent Sprints