Calculating Earned Business Value for an Agile Project: A New Metric

July 13, 2006 — Posted by Jim Trott

Agility Works. You can look at projects and see that more often than not, it delivers the goods. So, why do so many software projects remain artifact-driven and waterfall-ish? The most common excuses are that agility is too developer-centric, that it is too lightweight, and that feedback to business is hard to understand. In particular, many managers in larger companies miss the metrics that waterfall-type projects deliver.

In [an old white paper], we consider[ed] a new metric - Earned Business Value (EBV) - to report progress and to manage Agile projects. [Ken Pugh has written a newer blog about estimating Business Value Estimating Business Value]

EBV is mathematically sound and is pragmatic for business. EBV can replace Earned Value Analysis (EVA), a usual metric for waterfall projects.

What do you think? I would love to get your comments. Post them to this blog or drop us a note:

Dan Rawsthorne's white paper [now is at] Calculating Earned Business Value for an Agile Project


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About the author | Jim Trott

Jim Trott is a senior consultant for Net Objectives. He has used object-oriented and pattern-based analysis techniques throughout his 20 year career in knowledge management and knowledge engineering. He is the co-author of Design Patterns Explained: A New Perspective on Object-Oriented Design, Lean-Agile Software Development: Achieving Enterprise Agility, and the Lean-Agile Pocket Guide for Scrum Teams.


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