I just finished speaking at the PMO Symposium 2011 http://www.pmosymposium.org this morning. This has been a great conference focusing on how do organizations deliver value. Historically, there has been a lot of challenges between PMOs and software teams, notably in the Agile space. Many of the conflicts are misunderstandings. The true conflicts can be addressed better when we start migrating from constraint-driven to value-driven management. Many people asserted that the PMO’s need to help organizations achieve success through Lean and Agile principles, practices and methods.
My presentation addressed the issues of communication between business and agile teams. Traditional EVM makes no sense in software (and is potentially harmful) because claiming value earned based on intermediate work products–without an assertion of quality–does not provide reasonable forecasts. Agile provides an assertable and inspectable quality. Also, by ordering in terms of highest Business Value and risk considerations along with potentially shippable increments, I believe starts to include notions of value. Still, AgileEVM measures performance against plans (that can be re-baselined every iteration if needed). AgileEVM integrates cost management. Doing it well means not giving up what Agile offers: adaptive planning, quality.