Updated Agile Course Domain II 27102020 123105am

Agile Project Management
MS Project Management
Muhammad Waseem PMP

mwjaved@yahoo.com
03005257700
Domain II
Value Driven Delivery
2
Domain I Domain II Domain III
Agile Principles Value Driven Stakeholders

and Mindset Delivery Engagement
Define Positive Stakeholders

9 Tasks Value Needs
3 Tasks 2 Tasks
Incremental Stakeholders
Development Involvement
5 Tasks 3 Tasks
Avoid Potential Stakeholders

Downsides Expectations
3 Tasks 4 Tasks
Prioritization
3 Tasks
9 tasks
14 tasks
3
Domain II - Value-Driven Delivery
1. DEFINE POSITIVE VALUE - 3 TASKS
Task 1:
– Define deliverables by identifying units that can be produced
incrementally in order to maximize their value to stakeholders while
minimizing non-value added work.
Task 2:
– Refine requirements by gaining consensus on the acceptance criteria
for features on a just-in-time basis in order to deliver value.
Task 3:
– Select and tailor the team’s process based on project and organizational
characteristics as well as team experience in order to optimize value
delivery.
4
2. AVIOD POTENTIAL DOWNSIDES - 3 TASKS

Task 4:
– Plan for small releasable increments by organizing requirements into
minimally marketable features/minimally viable products in order to allow
for the early recognition and delivery of value.
Task 5:
– Limit increment size and increase review frequency with appropriate
stakeholders in order to identify and respond to risks early on and at minimal
cost.
Task 6:
– Solicit customer and user feedback by reviewing increments often in order to
confirm and enhance business value.
5
3. PRIOTORITZATION - 3 TASKS
Task 7:
Prioritize the units of work through collaboration with stakeholders in order to
optimize the value of the deliverables.
Task 8:
– Perform frequent review and maintenance of the work results by prioritizing
and maintaining internal quality in order to reduce the overall cost of
incremental development.
Task 9:
– Continuously identify and prioritize the environmental, operational, and
infrastructure factors in order to improve the quality and value of the
deliverables.
6
4. INCREMENTAL DEVELOPMENT - 5 TASKS
Task 10:
– Conduct operational reviews and/or periodic checkpoints with stakeholders in order to
obtain feedback and corrections to the work in progress and planned work.
Task 11:
– Balance development of deliverable units and risk reduction efforts by incorporating
both value producing and risk reducing work into the backlog in order to maximize the
total value proposition over time.operational reviews and/or periodic checkpoints with
stakeholders in order to obtain feedback and corrections to the work in progress and
planned work.
Task 12:
– Re-prioritize requirements periodically in order to reflect changes in the environment
and stakeholder needs or preferences in order to maximize the value.
Task 13:
– Elicit and prioritize relevant non-functional requirements (such as operations and
security) by considering the environment in which the solution will be used in order to
minimize the probability of failure.
Task 14:
– Conduct frequent reviews of work products by performing inspections, reviews, and/or
testing in order to identify and incorporate improvements into the overall process and
product/service.
7
What is value driven delivery?
• Projects are undertaken to generate value for businesses
• So, value-driven delivery should be the focus of the project

through out
• While making choices in project the focus should be on

options that generates business value.
8
9
• Minimize Waste
• Wasteful activities reduce value. This is why agile

methodologies have adopted the lean concept of
minimizing waste and other nonvalue-adding activities.
• An agile team might reduce or postpone activities that

are required by the organization but not directly focused
on delivering value, such as formal time tracking and
reporting
10
To maximize value, it is useful to revisit the Mary and Tom Poppendieck, famous
book Implementing Lean Software Development: From Concept to Cash :
11
Value Based Analysis
Feature A Feature B
$5000
Business $3000
Benefit Business
Benefit
$1000
$4000 Cost To Build
Cost to Build
Cost Benefit Analysis

12
• Assessing Value of the project

– Methods used to determine if the business should
be undertaken or done.
– Three methods are used for this:
1. Return on Investment (ROI)

2. Net Present Value (NPV)
3. Internal Rate of Return (IRR)
13
RETURN ON INVESTMENT (ROI) T &T
• ROI means what return the business receives after committing investment on
annual basis
• Higher ROI value is better for the business
• For example ROI of 70% is less attractive than ROI of 125%
• Formula for ROI is (Revenue - Cost) / Cost
Example:
– Establishing cost for 12 months 100,000
– Revenue at the end of 12 months 120,000
– ROI (120,000-100,000)/100,000
= 2/10x100= 20%
14
PRESENT VALUE (PV) AND NET PRESENT VALUE (NPV) T &T

This method is used to determine the Present Value of the revenue of the future:
• PV means present worth of the project after taking inflation or interest into
account
Example:
If the revenue from a project after 12 month is 100,000. Due to 10% inflation its
present value will be 90,000.
• NPV means the cost of setting up the project is deducted from the present worth
of the project
Example:
If the revenue from a project after 12 month is 100,000. And 50,000 was spent
in setting up the business. Then the NPV will be:
(100,000-50,000) = 50,000. Due to 10% inflation its net present value will be
45,000.
In both cases higher PV and higher NPV will better for the project.
15
INTERNAL RATE OF RETURN (IRR) T &T
• The (IRR) is a rate of return used in capital budgeting to measure
and compare the profitability of investments.
• IRR tells us the rate of return the project will have over a given period
of time. It is also called the discounted cash flow rate of return.
• In the context of savings and loans, the IRR is also called the effective
interest rate. The term internal refers to the fact that its calculation
does not incorporate environmental factors (e.g., the interest rate or
inflation).
• IRR means expression of return on project in terms of interest rate
• Higher IRR is better for the project
• E.G. IRR of 10% is less attractive than IRR of 12.5%, for instance
16
17
T &T
CHARTERING
• Chartering in Agile is similar to the Develop Project Charter in PMBOK.
• However the level of details and assumptions is different.
• Agile Charters can be lightweight worksheets or fairly detailed documents.
• Typically they should answer W5H questions

1. What is the project about? A high level description of the project.
2. Why is it being undertaken? Business rational and requirement
3. When will it start and end? Start and end dates
4. Who will be engaged? Project participants and stakeholders
5. Where will it be done? Work site, location
6. How will it be undertaken? Approach, agile methods to be used
18
T &T
VALUE STREAM MAPPING
• Value Stream Mapping is a lean manufacturing technique adopted by

Agile methods to reduce waste.
• It illustrates the flow of information required to complete the work.
• Involves creating visual maps of the process
• It is used to determine wastages in the process to improve efficiency
• Some example of wastes are:
• Queuing for elevator, rebooting computer after program crash, using
official stationery for drafts.
<diagram on next page>
19
CUSTOMER-VALUED PRIORITIZATION T& T
• Practice of letting the Customer and/or Product Owner to decide what is
more valued for themselves is Value based prioritization
• Should be facilitated by team by sharing and communicating information
• Team should be ever-ready to think out of the box and to experiment just
for this basic goal of achieving value for stakeholders
• Customer and or Product Owner should be deciding which functionality

should be implemented first based on the probable value associated with
those functionalities
• Projects should be justified based on the probable Value they bring to

stakeholders and customers
21
PRIORITIZING VALUE T &T
Prioritization is a fundamental agile process.
the second agile principle "Welcome changing requirements,

even late in development:‘
if the customer continuously prioritizing the backlog, then

that new requirement is simply inserted at the appropriate
place in the backlog.
The lowest priority item drop off the list to accommodate the
change.
22
PRIORITIZING VALUE T &T
Agile teams also use prioritization to confirm that they are
delivering value.
At the end of each iteration, they sit down with the customer
to review the backlog, asking "Has anything changed?" and
"Do we still want to work on feature B next?"
Any new priorities are captured in the backlog and revisited

again at the next planning session. This helps ensure that we
are continuing to make progress toward the desired target.
23
CUSTOMER VALUED PRIORITIZATION SCHEMES T &T
Customer Valued Prioritization is a method of prioritizing features to be
included in releases. Some of the schemes that are used for
prioritization are:
• MoSCoW: Must have; Should have; Could have; Would have
• Monopoly Money: money equal to the project budget is given to stakeholders
• 100 point method: Stakeholders are given 100 points to distribute to various features
• Kano Analyses: Clarify customer preference in 4 categories. Delighters, Satisfiers, Dis-
satisfiers, and Indifferent. Features are selected based on feedback.
• Dot Voting or Multi-Voting: Stakeholder gets a predetermined number of dots (or check
marks, sticky stars, etc.) to distribute among the options
• Requirement Prioritization Model: Stake Calculate priority of feature based on benefit,
penalty, cost, and risk.
24
MoSCoW
A simple prioritization scheme that uses:
• Must Have
• Should Have
• Could Have
• Would like to have, but not this time
… to prioritize user stories.

25
Customer Value Prioritization
Building a child’s bike. Prioritize the features into ‘Must Have’, Should Have, Could Have
26
Customer Value Prioritization
Building a child’s bike. Prioritize the features into ‘Must Have’, Should Have, Could Have
27
T &T
RELATIVE PRIORITIZATION/RANKING
• Features are prioritized based on the business needs and the business
value of the feature.
• Relative prioritization provides a framework for deciding if and when to
incorporate changes.
• Question should be asked to the business: “What items are more
important?”
A
Minimum
B marketable release
C
D Cut off to meet
Budget/time
28
T &T
PRODUCT ROADMAP
• Product roadmap is a visual overview of the product releases and

its main components.
• It is a visual communication tool that provide stakeholders with a

quick view of primary release points and intended functionality.
• It shows how the product will be developed and released
<diagram on next page>
29
T &T
PRODUCT ROADMAP
30
RISK ADJUSTED BACKLOG T &T

 Risks are anti-value.
 They take time and resources away from the Business Business
efforts that deliver value and threaten the
feature feature
project benefits.
Risk Risk
 Risk mitigation and avoidance should be done response response
early.
Business Business
 Features that have higher risk score should be feature feature
given lower priority.
Business Selected
feature
 Create spikes to work on risks.
Risk
 Adjust backlog to include risks. response
AGILE CONTRACTING METHODS K&S
Level-3
• Agile Manifesto value, which ranks "Customer collaboration over contract

negotiation."
• Contracting in Agile is different from the traditional methods.

• In traditional methods the Scope or functionality are fixed and time and
cost will be adjusted to complete the scope or functionality.
• In agile methodology resources and time are fixed and scope or
functionality is flexible.
• So the number of features to be done in an iteration will depend on the
time, recourses, and output of the team.
32
AGILE CONTRACTING METHODS
Inverted Triangle Model
Scope or
Functionality Resources Time
Fixed
Agile
Traditional
Variable
Time Cost Scope or

Functionality
33
K&S
Level-3
AGILE CONTRACTING METHODS
Example of contracts:
• Contracts used in Agile need to consider the aspect of flexibility of scope.

• Hybrid (Time and Material) type of contract could be suitable.
• Customized contract may be considered which have more flexibility to
suite requirement of project.
34
K&S
Level-3
AGILE TOOLING
Agile teams use low-tech, high-touch tools such

as task boards as their primary method of
tracking and reporting value. These tools often
take the form of information radiators, which
are large charts displayed in prominent places.
35
Agile Tooling
TASK AND KANBAN BOARDS T& T
• Task and Kanban boards can help deliver value on agile projects. These
are simple low tech, high touch displays that provide basic information on
the progress. These can be used instead of Gantt Charts
Work In
To Do Done
Progress
Stock Stock Data
search update base
Item Amend scheme
details order
Create
Order Process Order
list order
Order Log-in
refund
36
WIP LIMITS T& T
• Work in Progress (WIP) is the work that has been started but
has not been completed.
• Having more WIP is not good for the project as it increases
waste.
• WIP consumes capital.
• WIP can also hide bottle necks in the processes and workflow
• Agile aims to limit the WIP.
• This is done through Kanban Boards.
• Limits of WIP is written in the WIP section of the board.
37
WIP LIMITS T& T
WIP LIMIT
Work In
To Do Done
Progress (3)
H F C
G E
B
I D
J A
38
WIP LIMITS T& T
• Map WIP Limit : Work Faster, Increase Specialist
• Decrease Lead Time
• Reduce Idleness
• Protect Healthy Culture
• identify bottlenecks and maximize throughput
39
K&S
Level-1
INCREMENTAL DELIVERY
• Incremental delivery primarily means Higher

increment delivery of Value
2
• Agile approach suggests that the

functionality should be delivered in Lower
small stages to give margin to the 1
stakeholders, customers and product
owners to suggest healthy changes
40
Minimal Viable Product (MVP)
• The term "minimal viable product," or MVP
(also known as "minimal marketable feature,"
or MMF) refers to this package of functionality
that is complete enough to be useful to the
users or the market, yet still small enough that
it does not represent the entire project.'
41
MPV Additional Releases
Pencil
Car
ATM
42
Pencil
Makes a mark on paper Eraser

Can be held in one hand Visually attractive
Self-sharpening or continuous lead
Comfortable
43
Car
Transport occupants from point A to point Air conditioner and heater

B Fuel efficient
Road Legal Aesthetically pleasing
SAfe Sporty performance
Comfortable
44
ATM
Dispenses money Accepts cash deposits

Displays balance Accepts check deposits
Protects against attack Remembers user's favorite withdrawal
Keeps user information secure amounts
45
K&S
Level-1
FEEDBACK THROUGH PROTOTYPE, SIMULATIONS, AND DEMONSTRATION
• Demonstration of functionality are critical to confirming success

on software projects.
• Software is intangible and difficult to reference.
• In most of the cases the systems being built are new and will
not be repeated.
• The users should be able to see something to determine if the
systems meets the functionality requirements.
• Term I K I W I S I (I Know It When I See It) is often used in
software industry for getting feedback.
46
T &T
TRACKING AND REPORTING VALUE
• Various methods are used to monitor the rate at which features and value
are being delivered to make sure that the project is on track.
• These methods include:
– Agile Earned Value Management

– Cumulative Flow diagrams
– Burn down graphs
– Task and Kanban Boards
T &T
AGILE EARNED VALUE MANAGEMENT
• In this method cumulate cost of the project is calculated and is plotted as

an S-curve.
• Actual cost is plotted to show the present cost of the projected.
EARNED VALUE MANAGEMENT T &T
S-Curve Graph
T &T
CUMULATIVE FLOW DIAGRAMS (CFD)
• Cumulative flow diagrams are tools for tracking and forecasting agile
projects
• CFDs can help us gain insight into project issues, cycle times, and likely
completion dates.
• Different sections of the diagrams can be used to identify potential issues.

CUMULATED FLOW DIAGRAMS (CFDs) T &T
Not started
Completed
Started
• FREQUENT VERIFICATION AND VALIDATION

• Agile techniques are designed to resolve problems at earlier,
before they grow bigger and move up the cost of change
curve.
• Like the old saying, "A stitch in time saves nine," agile uses
regular testing, checkpoints, and reviews to address problems
before they get bigger.
• This practice is referred to as frequent verification and

validation.
52
T &T
TASK BOARDS AND KANBAN BOARDS
• Tasks boards and Kanban boards are a very

good visual tool for tracking and reporting
value of the project.
• As they are highly visible they can show how
the work is progressing over in the project.
TASK AND KANBAN BOARDS T &T
TASK AND KANBAN BOARDS T &T
CUSTOMER VALUED PRIORITIZATION SCHEMES T &T
Customer Valued Prioritization is a method of prioritizing features to be
included in releases. Some of the schemes that are used for
prioritization are:
• MoSCoW: Must have; Should have; Could have; Would have
• Monopoly Money: money equal to the project budget is given to stakeholders
• 100 point method: Stakeholders are given 100 points to distribute to various features
• Kano Analyses: Clarify customer preference in 4 categories. Delighters, Satisfiers, Dis-
satisfiers, and Indifferent. Features are selected based on feedback.
• Dot Voting or Multi-Voting: Stakeholder gets a predetermined number of dots (or check
marks, sticky stars, etc.) to distribute among the options
• Requirement Prioritization Model: Stake Calculate priority of feature based on benefit,
penalty, cost, and risk.
56
MoSCoW
A simple prioritization scheme that uses:
• Must Have
• Should Have
• Could Have
• Would like to have, but not this time
… to prioritize user stories.

57
Monopoly Money
Monopoly money equal to the amount of the project
budget
Distribute those funds amongst the system features.

Monopoly
Whole team participates in this.
Money-
Process
Priorities each feature with monopoly money
Add up the values and this gave the first order of priority.
After that, each member takes a turn moving a feature up

or down
The product owner goes last, and that's how the final
priority is decided
Monopoly money should be equal to
the project budget
Monopoly The technique works best when

prioritizing features
Money
For entire backlog, stakeholders might

omit documentation or other tasks
they don’t see the immediate value in
100-Point Method
Each stakeholder is
given 100 points
100-point
These points are used
method
to vote for the most
important
requirements.
The stakeholders can

distribute the 100 • 30 points here,
points in any way • 15 points there,
based on stakeholder • or all 100 points on a single requirement
requirements:
100-Point Method
Each person Accumulated

5 items to be
All votes are cast allocates their votes give rise to
prioritized.
100 points. prioritized list
Equal weightage Weighted

assigned priority assigned
Dot Voting or Multi Voting
Each stakeholder gets they distribute A good rule of thumb

a predetermined dots/votes amongst for assigning votes is
number of votes/dots features. 20% of total items
They place dot

stickers next to Options with the most
options presented dots gets prioritized
that they like.
Feedback Frames (Refined Dot Voting)
Kano Analysis
This technique categorizes features into 4 categories:

Delighters/Exciters Satisfiers Dissatisfiers Indifferent
This will help convey the features that bring the most
customer satisfaction.
Customer is responsible for:
• Setting the priorities and
• Ensuring the backlog is up to date.
Requirements
Reviews
(Backlog
Delivery team is responsible for:
Grooming)
• Estimating the work so the business can
effectively prioritize the work based on
cost-benefit analysis.
When planning releases of a product the releases need
to deliver business value
Minimum
Viable
MVP needs to be defined to:
Product
Identify what features need to be
included to make the product functional
Plan releases around the MVP.
(MVP)
MVP AKA Minimum Marketable Feature

Product is complete enough it brings Yet still small enough that it is clear that
value it is not complete.
Product MVP Additional Release
Eraser
• Makes a mark on Visually attractive
Pencil paper Self-sharpening or
• Can be held in one continuous lead
hand
Comfortable
Safe
AC and Heater
• Transport occupants Fuel Efficient
Car from point A to B Aesthetically pleasing
• Road legal Sporty performance
Comfortable
Protect against attack
Keep users information
safe
• Dispense money Accept cash deposits
ATM Machine • Display account Accept check deposits
balance
Remember user’s
favorite withdrawal
amounts
How to build a MVP
Make something user want
Validate your idea before you build an MVP

• Test the waters before going full in (relatively new idea)
MVP Contd.
• For unvalidated products, Start small and Iteratively build on it
Metrics to decide what goes in the MVP

• Features without which the product does not exist
• Good addition to the first list
MVP of the product will only have must-have

features
Relative Ranking
Regardless of how the
With relative prioritization,
backlog is prioritized the
it simply organizes features
end goal is to understand
by number 1,2,3 etc. out of
the stakeholder priorities of
a certain benchmark value
the features.
When new items are added

This makes it easier to to the list late on in
define a minimum viable development they will need
product by simply say 1-6 to replace a current item in
need to be done to create the MVP list or move down
the MVP. the priority of the item from
5 to 6.
This helps give the team a

clear understanding of what
needs to be done to
complete the project.
Questions/Answers
Test
Thank you
73

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Agile Project Management

Muhammad Waseem PMP

Agile Principles Value Driven Stakeholders

Define Positive Stakeholders

Avoid Potential Stakeholders

2. AVIOD POTENTIAL DOWNSIDES - 3 TASKS

What is value driven delivery?

• Projects are undertaken to generate value for businesses

• So, value-driven delivery should be the focus of the project

• While making choices in project the focus should be on

• Wasteful activities reduce value. This is why agile

• An agile team might reduce or postpone activities that

Cost Benefit Analysis

• Assessing Value of the project

1. Return on Investment (ROI)

PRESENT VALUE (PV) AND NET PRESENT VALUE (NPV) T &T

• Typically they should answer W5H questions

• Value Stream Mapping is a lean manufacturing technique adopted by

<diagram on next page>

• Should be facilitated by team by sharing and communicating information

• Customer and or Product Owner should be deciding which functionality

• Projects should be justified based on the probable Value they bring to

the second agile principle "Welcome changing requirements,

if the customer continuously prioritizing the backlog, then

Any new priorities are captured in the backlog and revisited

… to prioritize user stories.

• Product roadmap is a visual overview of the product releases and

• It is a visual communication tool that provide stakeholders with a

• It shows how the product will be developed and released

<diagram on next page>

RISK ADJUSTED BACKLOG T &T

• Agile Manifesto value, which ranks "Customer collaboration over contract

• Contracting in Agile is different from the traditional methods.

Time Cost Scope or

• Contracts used in Agile need to consider the aspect of flexibility of scope.

Agile teams use low-tech, high-touch tools such

• Map WIP Limit : Work Faster, Increase Specialist

• Decrease Lead Time

• Protect Healthy Culture

• identify bottlenecks and maximize throughput

• Incremental delivery primarily means Higher

• Agile approach suggests that the

MPV Additional Releases

Makes a mark on paper Eraser

Transport occupants from point A to point Air conditioner and heater

Dispenses money Accepts cash deposits

FEEDBACK THROUGH PROTOTYPE, SIMULATIONS, AND DEMONSTRATION

• Demonstration of functionality are critical to confirming success

TRACKING AND REPORTING VALUE

– Agile Earned Value Management

AGILE EARNED VALUE MANAGEMENT

• In this method cumulate cost of the project is calculated and is plotted as

EARNED VALUE MANAGEMENT T &T

CUMULATIVE FLOW DIAGRAMS (CFD)

• Different sections of the diagrams can be used to identify potential issues.

CUMULATED FLOW DIAGRAMS (CFDs) T &T

• FREQUENT VERIFICATION AND VALIDATION

• This practice is referred to as frequent verification and

TASK BOARDS AND KANBAN BOARDS

• Tasks boards and Kanban boards are a very

… to prioritize user stories.

Distribute those funds amongst the system features.

After that, each member takes a turn moving a feature up