I know Earned Value Management (EVM) is a big part of the PMP, but how does it work in an Agile context for the ACP? How do we calculate things like "Agile Earned Value" using story points instead of monetary values, and is this a frequent topic on the current exam?
3 answers
Agile EVM replaces "Planned Value" with the "Release Plan" and "Earned Value" with "Completed Story Points." For the exam, you need to understand that performance is measured against the Product Backlog. Instead of cost-variance, we often look at the "Velocity" vs. "Planned Velocity." You likely won't have to do heavy math like the PMP, but you must understand the concepts of CPI (Cost Performance Index) and SPI (Schedule Performance Index) within a release. I found that visualizing the "Burn-up Chart" as a proxy for EVM helped me a lot during my study sessions last year.
If we are using story points for EVM, how do we handle "scope creep" when the Product Owner adds new stories mid-project? Does the baseline just shift?
Agile EVM is all about the "Release" level, not the "Sprint" level. Sprints are too short for meaningful EVM data; you need the bigger picture to see trends.
Spot on, Barbara. Most candidates make the mistake of trying to apply EVM to a 2-week Sprint. Focus on the release metrics for the exam, as that's where the value is tracked.
Christopher, in Agile, we don't call it scope creep; it's just "backlog refinement." For EVM purposes, the total "Planned Value" (total story points in the release) increases. This will naturally lower your SPI because you now have more work to do within the same timeframe. The exam expects you to know that the team's velocity remains the same, but the "finish line" moves. It’s a transparent way to show stakeholders the impact of their new requests.