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Sometimes it is all about the money!

In our interlude, I posited that there are questions that organizations need to ask and find a mechanism to answer. Some of the feedback I received suggested that the questions weren’t agile or weren’t agile enough. To some, only the outcome matters, not the cost or the amount of time it takes to deliver the functionality requested. The perspective of a team can be very parochial, focused on delivering what is in front of them; however, their existence is tied to more than customer satisfaction.   All organizations are tied to cost and productivity. Understanding the impact and return on effort, raw material and capital within a company that is ultimately needed to deliver the organization’s products and services define ROI and profitability. (more…)

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Portfolio metrics provide direction

Agile portfolio metrics are integral to prioritization and validating the flow of work. The term portfolio has many uses in a software development organizations, ranging from product portfolios to application portfolios.  I have even seen scenarios where organizations put all their development, enhancement and maintenance efforts into a single bucket for prioritization and queuing until there was the capacity to work on them.  We will use an inclusive definition of the portfolio to include, at a high level, all the software development and enhancement work in an organization. Products, lines or business, and even applications are often used to define portfolios.  I break Agile portfolio metrics into five high-level categories. (more…)

I am building a mind map for the project i have titled, Metric Minutes. I currently focusing on financial metrics. The portion of the mind map is shown below.

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Are there other financial metrics you use or recommend?