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RE: [scrumdevelopment] Cracking the budget conundrum

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  • srinivas chillara
    Looks pragmatic, atleast for some of the situations I ve been in. cheers Cheeenie ...
    Message 1 of 4 , Apr 1, 2007
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      Looks pragmatic, atleast for some of the situations
      I've been in.

      cheers
      Cheeenie


      --- Paul Lear <paul.lear@...> wrote:

      > I don't know the 'right' answer, but I can tell you
      > what worked for me. I'm
      > a recovering PMP, so I have no problem presenting in
      > terms that corporate
      > capital committees understand. Start with your
      > initial product backlog,
      > prioritised and estimated. Then develop sequence of
      > sprints and group into
      > a release roadmap. I use this to develop a scope
      > and implementation plan
      > for a project charter. Calculate the burn rate
      > (people costs x months) to
      > get your budget. The level of certainty in the
      > estimates is used to
      > determine the contingency budget (e.g., +/- 25%).
      > If they think your
      > uncertainty is too high, propose a few sprints
      > (fixed price, based on team
      > size x rate x time) to refine the estimates. Then
      > you'll have a good
      > velocity to work with, and maybe a few spikes to
      > better size your stories.
      > So, you have scope, budget, release plan. What else
      > do they need? Resource
      > plan, risk plan, ...? Pretty easy to pull together.
      > Format that into their
      > standard PowerPoint deck, and you're ready to go.
      >
      > Now, as your product owner reprioritises the product
      > backlog and the team
      > decides on the actual work for each sprint, take
      > half an hour and fill out
      > the 'Change Control Form' to record any change in
      > scope, timeline or budget.
      > To satisfy the powers-that-be, every month I would
      > drop the major stories on
      > to a PowerPoint slide that looked like a Gantt
      > chart, based on the order of
      > the backlog. Put nice green check marks next to the
      > completed stories, and
      > everyone is happy.
      >
      > Paul Lear
      > http://lear.ca/
      > <mailto:paul@...>
      >
      > _____
      >
      > From: scrumdevelopment@yahoogroups.com
      > [mailto:scrumdevelopment@yahoogroups.com] On Behalf
      > Of bazil_arden
      > Sent: March 30, 2007 10:14 AM
      > To: scrumdevelopment@yahoogroups.com
      > Subject: [scrumdevelopment] Cracking the budget
      > conundrum
      >
      >
      >
      > Please help me with some convincing arguments for
      > organisations that
      > have a requisition process and need to sign-off a
      > fixed amount of
      > money for a pre-defined solution (often months in
      > advance)
      >
      > Agilists would say;
      > - you can stop paying when you have what you want
      > (which could be less
      > than your original cost estimate)
      > - get the highest value features early and deploy
      > them when you want
      > - benefit from productivity gains and a better
      > overall solution
      > - don't pay for the 64% of features that go unused
      > - lower maintenance costs - from refactored, simpler
      > code (i.e.
      > budgets should reflect the life of the solution -
      > not just its creation)
      > - reduce risk (of project diverging from the
      > business)
      >
      > But none of this fits their existing method for
      > buying custom software.
      >
      > Budgets (& contracts) give the purchaser a *sense*
      > of certainty and
      > therefore managed risk - when in fact for various
      > reasons (see
      > Standish report and numerous examples in this forum
      > alone) this is not
      > the case.
      >
      > I am working with medium sized new media companies
      > and their most
      > common concern is "our client has a budget, and we
      > need to say what we
      > are going to deliver for that money"
      >
      > Any thoughts?
      >
      > Bazil Arden
      > www.AgileChange.com
      >
      > PS: I've looked through ScrumDevelopment - but
      > cannot find specific
      > answers to this
      >
      >
      > .
      >
      >
      <http://geo.yahoo.com/serv?s=97359714/grpId=1569064/grpspId=1707209021/msgId
      >
      =20788/stime=1175264192/nc1=4025373/nc2=3848644/nc3=3>
      >
      >
      >




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