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how_do_we_know_where_we_are_spending_our_money [2019/09/11 07:22] – [And Then There are More Arbitrary Definitions] hpsamioshow_do_we_know_where_we_are_spending_our_money [2020/10/29 13:09] (current) – Added type of work hans
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 While many Agile-ists just want to say “Trust us; we are working on the most important thing every time”, this really is not responsible management from the perspective of the executives, nor sufficient for good corporate governance. The reason is that there are many different perspectives of the use of money that need to be looked and there is no (single) way of determining priority that would take into consideration these multiple perspectives.  While many Agile-ists just want to say “Trust us; we are working on the most important thing every time”, this really is not responsible management from the perspective of the executives, nor sufficient for good corporate governance. The reason is that there are many different perspectives of the use of money that need to be looked and there is no (single) way of determining priority that would take into consideration these multiple perspectives. 
 +
 +In addition many organizations assume that the work management tool we are using to track work can be used to directly replace existing time tracking systems. In most cases this is not true. While we can generate the answers to questions such as “where are we spending our money?” using Agile data, we do not have to know “how much time did a particular person spend on this” to answer the question.
  
 ====== What Types of Categories Do We Often See? ====== ====== What Types of Categories Do We Often See? ======
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 Here are some dimensions I’ve seen organizations track: Here are some dimensions I’ve seen organizations track:
 +
 +===== Type of Work =====
 +
 +Organizations often start by tracking the basic types of work that they are doing, to ensure that they have a balance of the work going forward. Typically you'll see:
 +
 +  * New Feature
 +  * Maintenance
 +  * Technical debt reduction, refactoring, or other quality oriented data
 +  * Contractural
 +  * Etc.
  
 ===== Product Life Cycle Horizon investment ===== ===== Product Life Cycle Horizon investment =====
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 ===== Centralized vs Decentralized Decision Making ===== ===== Centralized vs Decentralized Decision Making =====
  
-Organizations often want to understand what kind of decisions we are making at what kind of levels. For agile transformations, there is a desire to de-centralize decision making as far as possible. An example tag on Features to track this might include:+Organizations often want to understand what kind of decisions we are making at what kind of levels. For agile transformations, there is a desire to de-centralize decision making as far as possible. An example tag on Epics, Features, and Stories that might include:
  
   * Portfolio: work initiated and prioritized at the program level   * Portfolio: work initiated and prioritized at the program level
   * Program: work initiated and prioritized at the program level   * Program: work initiated and prioritized at the program level
 +  * Team: work initiated and prioritized at the team level
  
 ===== Strategic Theme ===== ===== Strategic Theme =====
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 See [[how_do_we_do_software_capitalization_when_we_go_to_agile|How Do We Do Software Capitalization When we Go to Agile?]] for more on this subject. See [[how_do_we_do_software_capitalization_when_we_go_to_agile|How Do We Do Software Capitalization When we Go to Agile?]] for more on this subject.
 +
 +===== Project Identifier =====
 +
 +Often the work that is being taken on is the result of a customer project, for example. Project Managers and other stakeholders will be interested in understanding, for example, progress on elements of their project. Typically some kind of unique Project ID is used to isolate projects from other projects, as well as work that is not related to any project.
  
 ===== Funding Source ===== ===== Funding Source =====
  
-Organizations often have different sources of funding for an IT organization and it is up to the IT organization to ensure that the capacity allocated to work lines up with these funding sources. To track, tags we could be apply Features could be:+Organizations often have different sources of funding for an IT organization and it is up to the IT organization to ensure that the capacity allocated to work lines up with these funding sources. To track, we could tag based on:
  
   * Customer Projects   * Customer Projects
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 ====== Want to Know More? ====== ====== Want to Know More? ======
 +
 +  * [[how_do_i_convert_points_and_velocity_to_dollars|How Do I Convert Points and Velocity to Dollars?]]
 +  * [[how_do_we_do_software_capitalization_when_we_go_to_agile|How Do We Do Software Capitalization When we Go to Agile?]]
 +  * [[can_we_trust_story_points_as_a_measure_of_effort|Can We Trust Story Points as a Measure of Effort?]]
  
 {{tag>FAQ investment executive reporting}} {{tag>FAQ investment executive reporting}}
  
/home/hpsamios/hanssamios.com/dokuwiki/data/attic/how_do_we_know_where_we_are_spending_our_money.1568211732.txt.gz · Last modified: 2020/06/02 14:27 (external edit)