The Financial Benefits of Scrum

  Scrum   ProjectsAtWork  

Scrum can be a project team’s best friend, but there are many other reasons to leverage Scrum across your organization, from risk avoidance to tangible return on investment. Let’s take a look at how Scrum can benefit the bottom line.

You often hear about the benefits of Scrum for teams and team members. Those benefits are real, and they can be significant. However, Scrum delivers beyond the team. It can drive tremendous financial benefits for organizations. Oddly enough, these financial benefits are rarely given much attention, even though return on investment is a big part of any organization's decision to commit time, resources, and money. So let's spend some time looking at how Scrum helps your bottom line.

Scrum contributes financial benefits in two ways:

• Tangible return on investment
• Less tangible risk avoidance

Scrum and ROI

Tangible benefits tend to be easy to identify. Scrum delivers performance against scope/quality, schedule, and budget. That's important to organizations. As an example, in the recent Scrum Alliance State of Scrum Report, 87 percent of respondents identified one of those three factors as the most significant benefit of using Scrum.

Scope/quality, schedule, and budget drive significant bottom-line benefits. When you lower your execution cost, you improve your margin and reduce your investment payback period. That …

Please log in or sign up below to read the rest of the article.