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Budgeting Agile Projects

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Sinan Guven Founder & CEO| Guven Partners LLC Hoboken, Nj, United States
I'd like to hear how PM practitioners keep their Agile projects within budget without compromising from the scope and quality. How do you budget for Agile projects?
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
First of all, agile project does not exists. This is a mistake that we have to avoid. You have a project that will be run using a project life cycle that supports an approach (agile for example). And perhaps you will use a method based on the project life cycle and the approach (SCRUM for example). After that said, agile is based on adaptive life cycle models. On that models quality is addressed intrinsically and budget and tie will determine your scope. So, that is what you have to take into account.
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1 reply by Sinan Guven
Nov 07, 2016 7:13 PM
Sinan Guven
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Hi Sergio,
Thank you for your feedback. Do you mean that you start with a set budget and let the amount of budget determine the scope you deliver? If that's the case, at what point during the project do you freeze/finalize the scope to be delivered based on the given budget?
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Anupam India
You may refer below article -

http://searchcio.techtarget.com/news/22400...budget-delivery
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1 reply by Sinan Guven
Nov 07, 2016 7:14 PM
Sinan Guven
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Thank you Anupam!
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Sinan Guven Founder & CEO| Guven Partners LLC Hoboken, Nj, United States
Nov 06, 2016 7:32 PM
Replying to Sergio Luis Conte
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First of all, agile project does not exists. This is a mistake that we have to avoid. You have a project that will be run using a project life cycle that supports an approach (agile for example). And perhaps you will use a method based on the project life cycle and the approach (SCRUM for example). After that said, agile is based on adaptive life cycle models. On that models quality is addressed intrinsically and budget and tie will determine your scope. So, that is what you have to take into account.
Hi Sergio,
Thank you for your feedback. Do you mean that you start with a set budget and let the amount of budget determine the scope you deliver? If that's the case, at what point during the project do you freeze/finalize the scope to be delivered based on the given budget?
...
1 reply by Sergio Luis Conte
Nov 07, 2016 7:27 PM
Sergio Luis Conte
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Yes Sinan. I am facing this situation each time we use agile in my current work for example. But take a look to what Don Shannon has published time ago. I do not keep the link but the name of the publication is "Agile, EVM, and the FAR: Learning to Get Along". Is the best thing I ever read about this. Perhaps I think that because, no matter lot of the initiatives I am involved are not in the USA only, it applies as a guideline based on my personal experience (I am working in agile environments from the very begining of agile).
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Sinan Guven Founder & CEO| Guven Partners LLC Hoboken, Nj, United States
Nov 06, 2016 10:19 PM
Replying to Anupam
Thank you Anupam!
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
Nov 07, 2016 7:13 PM
Replying to Sinan Guven
...
Hi Sergio,
Thank you for your feedback. Do you mean that you start with a set budget and let the amount of budget determine the scope you deliver? If that's the case, at what point during the project do you freeze/finalize the scope to be delivered based on the given budget?
Yes Sinan. I am facing this situation each time we use agile in my current work for example. But take a look to what Don Shannon has published time ago. I do not keep the link but the name of the publication is "Agile, EVM, and the FAR: Learning to Get Along". Is the best thing I ever read about this. Perhaps I think that because, no matter lot of the initiatives I am involved are not in the USA only, it applies as a guideline based on my personal experience (I am working in agile environments from the very begining of agile).
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1 reply by Sinan Guven
Nov 08, 2016 10:02 AM
Sinan Guven
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Thank you Sergio! I will review Don Shannon's article and let you know my thoughts or questions. In the meantime, can you clarify my question from the previous message. At what point in the project do you freeze/finalize the scope that you plan to deliver with the given budget?
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Sinan Guven Founder & CEO| Guven Partners LLC Hoboken, Nj, United States
Nov 07, 2016 7:27 PM
Replying to Sergio Luis Conte
...
Yes Sinan. I am facing this situation each time we use agile in my current work for example. But take a look to what Don Shannon has published time ago. I do not keep the link but the name of the publication is "Agile, EVM, and the FAR: Learning to Get Along". Is the best thing I ever read about this. Perhaps I think that because, no matter lot of the initiatives I am involved are not in the USA only, it applies as a guideline based on my personal experience (I am working in agile environments from the very begining of agile).
Thank you Sergio! I will review Don Shannon's article and let you know my thoughts or questions. In the meantime, can you clarify my question from the previous message. At what point in the project do you freeze/finalize the scope that you plan to deliver with the given budget?
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Stéphane Parent Self Employed / Semi-retired| Leader Maker Prince Edward Island, Canada
The Shannon article is available on LinkedIn:
https://www.linkedin.com/pulse/agile-evm-f...pcm-ncma-fellow

It's definitely worth the read.
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2 replies by Drew Craig and Sinan Guven
Nov 08, 2016 3:56 PM
Sinan Guven
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Thank you for sharing Stéphane!
Sep 15, 2017 3:12 PM
Drew Craig
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Thank you, both Stéphane and Sergio, for highlighting this article.
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Sinan Guven Founder & CEO| Guven Partners LLC Hoboken, Nj, United States
Nov 08, 2016 2:23 PM
Replying to Stéphane Parent
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The Shannon article is available on LinkedIn:
https://www.linkedin.com/pulse/agile-evm-f...pcm-ncma-fellow

It's definitely worth the read.
Thank you for sharing Stéphane!
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Kevin Flanagan People-Centered Servant Leader| Prodapt at Windstream Charlotte, Nc, United States
I utilize Excel and forecast out every resource I believe I will need based on their bill rates to the company
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1 reply by Sinan Guven
Nov 20, 2016 5:36 PM
Sinan Guven
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Thank you for your feedback Kevin. Excel is my favorite planning tool as well.
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Wayne Mack Retired| Retired South Riding, Va, United States
I would like to follow up on @Sergio's comment "[an] agile project does not exists. ... You have a project that will be run using [agile]. " This is a key point. Using agile does not mean one no longer has a change control process. In fact, agile proposes a more explicit change control process.

With a scope broken into a list of independent capabilities (the product backlog), one can provide the customer with the flexibility to swap items on and off the list. This shift in decision making responsibility allows for a more collaborative discussion than is typical in change control processes.
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