article thumbnail

Agile Finance: How Do You Make a Business Case for Transformation?

Leading Agile

You will need to outline the estimated costs to be incurred as part of that transformation as well as the estimated annual benefits and savings expected to be realized from your transformation effort. . Return on Investment or ROI is a performance measure used to evaluate the efficiency of an investment. Payback Period.

Finance 86
article thumbnail

4 Fallacious Reasons to Estimate and Why Those Are Fallacious

Herding Cats

There's a recent post titled Four Fallacious Reasons to Estimate. It lists the usual suspects for why those spending the money think they don't have to estimate how much they plan to spend when they'll be done producing the value they've been assigned to produce for that expenditure. Let's look at each one in more detail.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Introduction to Earned Value Formulas

MPUG

You can get this number from your finance analyst, budget spreadsheet, or report. Now we’ve looked at some cost performance measures, let’s look at a few more specifically aimed at managing schedule performance. There might be a good reason for that, but it could also tell you that your estimates were overambitious.

Budget 40
article thumbnail

Fallacy of the Week

Herding Cats

Have sufficient Technical Performance Measures margin to cover the required performance measure of the Capabilities. You can't make decision in the presence of uncertainty without making estimates about those decisions. Manage risk, estimate, manage other people's money like an adult. Related articles.

article thumbnail

Start with Principles, Not Personal Anecdotes

Herding Cats

I've seen estimates abused by bad managers, so let's NOT estimate and that will fix the behavior of Bad Managers." While the human behaviors are real and observable, conjecturing that decisions can be made in the presence of uncertainty without estimating the outcome of those decisions, there is no principle to support that conjecture.

article thumbnail

Risk Management Frameworks in IT: A Comparative Analysis

Wrike

These frameworks involve the use of statistical techniques, probability theory, and mathematical formulas to estimate the likelihood and impact of risks, calculate expected values, and determine risk exposure. Quantitative risk management frameworks, on the other hand, use quantitative data and mathematical models to analyze and assess risks.

article thumbnail

Misquotes of Deming

Herding Cats

It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth. This is used in support of the fallacy that estimates aren't needed to make decisions in the presence of uncertanty. Technical Performance Measures. Why Guessing is not Estimating and Estimating is not Guessing.