Earned Value Management (EVM) is a method for managing projects that is often used in standard, plan-driven methods. But in Agile settings where development happens in small steps and iterations, the traditional idea of Earned Value may not work as well. Agile methods put more emphasis on being able to change, getting feedback often, and delivering value than on measuring success in a rigid way.
Still, there are some changes and other ways that Agile teams can try to track progress and measure how much value they are delivering. Some of them are:
1. Story Points: Agile teams often use story points to figure out how long it will take to finish user stories or things on the backlog. Story points are a general way to measure how hard, important, and complicated something is. By keeping track of how many story points are finished in each version (sprint), the team can see how they are doing and how fast they are moving.
Velocity: Velocity is a measure that Agile teams, especially Scrum teams, use a lot. It counts how many story points the team finishes on average in each iteration. By comparing the planned story points to the real story points that were finished, the team can judge how well they did and estimate how much they can do in future iterations.
3. Burnup/Burndown Charts: Burnup and burndown charts show how work has changed over time in a visual way. Even though these charts don’t directly measure gained value, they show which backlog items or user stories are done. The team can keep track of how many stories or story parts have been finished and compare them to the planned scope. This lets stakeholders check on progress.
4. Value Metrics: Agile teams are focused on giving the customer what they want. In addition to keeping track of the work items that have been done, teams can also define and measure value metrics that are in line with the project’s goals. These could be metrics about customer satisfaction, user adoption, income generation, or anything else that shows how much value is being provided.
5. Agile Metrics: Agile methods offer a variety of metrics that can be used to measure how well the team is doing and how far it has come. These include things like lead time, cycle time, defect density, customer satisfaction numbers, and team happiness. Even though these metrics may not directly relate to earned value, they tell us a lot about how effective, efficient, and able to produce value the team is.
It’s important to keep in mind that Agile teams shouldn’t only use standard earned value metrics. Instead, they should focus on measuring outcomes and value. Over strict adherence to plans and measures that have already been set, the focus is on providing software that works, adapting to change, and maximising customer collaboration. Agile teams should choose measures that are in line with their goals, give them useful information, and help them improve their processes for delivering and creating value all the time.
