How to manage a fixed budget while using scrum sprints?, if the scope is flexible according to agile, however, you as a PM still have to report costs as usual Saving Changes...
Well there's fixed and there fixed. That is more about the wording in the contract. But within the project, having room to move with scope is a major factor in realizing the budget. If a firm and fixed price is the agreement, then scope will include those things that fit into the budget. If not. then they need to be cut further, in consultation with the customer. This may result in raising the budget to fit in more features. Your MVP's should be acutely aware of the budget constraint. Saving Changes...
I would like to say that, actually no budget is firmly fixed.
The budget is calculated based on project activities which can be found in WBS, which comes from conditions in contract.
Per my understanding, scrum sprints is used to respond quickly to changes, if there is no change, the budget is fixed. if there are big changes, which are not included in the contact, the budget should be changed too. Saving Changes...
The inverted Agile triangle means that the cost (and time) is fixed. Whatever scope can be piled into that (in terms of user stories, features) can be completed.
In the real world, it pays to have a contingent sprint planned with no tasks assigned to it. This is to address spillover NCRs or any pending stories.
Of course, if additional sprints are required, every stakeholder needs to be aware well beforehand. Saving Changes...
Christian Sanabria JiménezMBA, MSc, PMP, IT Professional / Scrum Master / ITIL / Web Application Developer| Costa Rica Institute of TechnologyCartago, Cartago, Costa Rica
I recommend you to negotiate and have a fixed sprint cost, but not a fixed number of sprints Saving Changes...
While your burn rate will be fixed assuming resource allocation doesn't change sprint-over-sprint, you can still use EVM or other methods of determining and reporting progress towards the end goal.
For example, if you were approved for a year's worth of funding (e.g. 26 sprints) for a certain set of features and now you are forecasting to deliver the full backlog will take a few more sprints, you'd need to get approval on that overrun...
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