Monitoring Scrum Projects with AgileEVM and Earned Business Value Measures

Scrum is a popular project management framework for agile projects. Scrum projects are typically managed quite informally, with the only measures used being various velocity metrics and burndown charts. Because these only measure the speed of delivery, not the project’s cost or the business value it generates, many project managers are resistant to Scrum. One of the major differences between traditional and agile projects is that traditional projects focus on delivering software that satisfies requirements, while agile projects focus on maximizing ROI through continuous feedback and re-planning. That is, the focus of agile projects is on business value rather than conformance to requirements (outcomes over outputs), and so Earned Business Value (EBV) measures can be crucial. Of course, it is also important to know how efficient and effective the team is in doing the work that provides Business Value, so Earned Value Management (EVM) metrics are also applicable. One of the most jarring aspects of Scrum for traditional project managers is the way it eliminates many of the metrics and reports used commonly used in waterfall and other traditional management practices. This paper offers two metrics as agile-specific alternatives.

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