Agile Transformations and ROI
This question was asked recently on a social network Scrum group. I thought that it was very relevant and also a common request from executives that desire an evaluation of ROI for agile transformations. However, it is important to consider both efficiency and the effectiveness of your agile transformation.
My higher-ups want me to find some way to prove that Scrum has increased our efficiency. Since we didn’t really measure things before I have no idea where to begin! Any help? Anything at all would be useful. I am starting from absolute scratch! Maybe team member perception surveys? Any ideas at all are appreciated! – Laura Ammons
An answer to the question, “How do I measure and report on the value of an agile transformation using Scrum?”
You will need to identify a common denominator from pre-Scrum method use and Scrum. For example, it is common to account for hours (timesheets) per project per engineer/dev/resource (to varying levels of detail). You may be able to go back and look at how many hours were expended in total (think cross functional team / aggregated) using pre-Scrum methods. Do the same for several of your scrum projects. Then you can make more subjective arguments on the VALUE of the PRODUCTION comparing both methods. You may even be able to get hard numbers on the value of the product from customer invoices.
Once you have the data, the arguments are there for you to frame and suit your agenda.
You can also look at defect rates, source lines of code, and other quantitative figures (use these carefully). The other secondary and tertiary KPI’s and soft indicators you mentioned are good for backup slides.