Shown below are the waterfall metrics in contrast with their agile counterparts. In contrast, the health of agile projects is seen through an analogous set of metrics at the portfolio level. Since project scope, budget, and timeline are defined at inception, the status is driven from actuals against that baseline. Project status of red-yellow-green is the primary method of conveying whether a waterfall-delivered project is in control or not. Project/program management implements controls to manage scope, financials, progress, and quality of delivery. As a result, PPM incorporates governing and funding of value-streams, in order to make effective portfolio-level trade-offs. The implication is that the linkage between portfolio-level decisions and team-level delivery can be broken, if the change in methodology is not anticipated. However, organizations that achieve agile at scale may fund value-streams, allow de-centralized financial decision making within the portfolio, and continuously prioritize their backlog of activities within each agile project to adjust to changing business priorities. Even as an organization starts its journey to agile adoption, there is really no difference in how the portfolio is governed. At the macro level, traditional and agile organizations will conduct portfolio management in the same manner. One way this is achieved is funding projects, which have a specific investment amount, a defined scope, and a target delivery date. The focus is on governing the portfolio to optimize resources, such that they are fulfilling the highest priorities of the organization. Portfolio management is responsible for continually assessing the performance of active programs and projects, against defined criteria. Incorporating these practices into demand management is essential for agile teams to plan effectively. As more teams adopt agile across the organization, the need to define value-streams and epics is critical, to ensure coordinated planning and delivery.
Epics are large cross-cutting initiatives that deliver solutions to the end user.
Value-streams are the ecosystem of teams that deliver against epics. These new concepts are value-streams and epics. Agile introduces two key concepts that enhance demand management, and support portfolio and results management (defined later). This is accomplished with prescribed points of entry for new requests, and qualifiers to prioritize them. What are key agile features to align with PPM?ĭemand management is focused on receiving, evaluating, and deciding upon work requests.
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