{"id":11139,"date":"2019-10-04T09:35:00","date_gmt":"2019-10-04T14:35:00","guid":{"rendered":"https:\/\/blog.planview.com\/?p=11139"},"modified":"2022-04-05T15:03:15","modified_gmt":"2022-04-05T20:03:15","slug":"agile-costing-and-capitalization-still-a-significant-barrier-to-scaling-agile","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/agile-costing-and-capitalization-still-a-significant-barrier-to-scaling-agile\/","title":{"rendered":"Agile Costing and Capitalization: Still a Significant Barrier to Scaling Agile"},"content":{"rendered":"

\"Agile<\/p>\n

As a professional working in technology, it amazes me how much business has changed over the years. I\u2019ve seen\u00a0<\/span>PMOs move from project management to <\/span>portfolio management<\/span>. I\u2019ve seen Agile move from the team to team of teams. Now, I\u2019m<\/span>\u00a0watching<\/span>\u00a0<\/span>as we<\/span>\u00a0question<\/span>, challenge, and evolve again with <\/span>the rise of\u00a0<\/span>Lean Portfolio Management<\/span><\/a>\u00a0and the move to a product-centric approach<\/span>.\u00a0<\/span>But as with all change, it\u2019s uneven and\u00a0<\/span>not<\/span>\u00a0everyone proceeds at the same pace.<\/span>\u00a0Many times, while businesses strive to adopt new ways of working, such as Agile, they get stuck\u00a0<\/span>in figuring out how to connect traditional operational needs with new more innovative approaches<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

A common challenge for those pursuing this latest move to\u00a0<\/span>A<\/span>gile<\/span>\u00a0<\/span>at<\/span>\u00a0<\/span>scale is connecting with Finance. Finance needs to understand costs; it needs to capitalize\u00a0<\/span>labor. To do this, there must be visibility and transparency between what teams are creating and an understanding of the effort (and hence cost) to create them. But the traditional way of doing this is disliked by most <\/span>A<\/span>gile teams. Time reporting is seen as overhead, as something that doesn\u2019t produce end user and customer value. <\/span>But what if finance had a clear-cut way to cost and capitalize Agile efforts? And what if this method was easier for development teams, too?<\/span>\u00a0<\/span><\/p>\n

\"Costing<\/a><\/p>\n

Automating the capture of Agile costs could help remove the tax of manual\u202ftime tracking\u202fand provide finance with an auditable way to calculate and capitalize Agile software development costs.\u202fBy utilizing a system that automatically tracks\u00a0<\/span>effort\u00a0<\/span>spen<\/span>t<\/span> on a story, feature,\u202fand\u202fcorresponding\u202fepic, organizations could get a realistic idea of the value delivery of their Agile teams. Implementing this\u202fwould require a solution that could\u202ftake\u202fin the\u202fwork of disparate Agile teams,\u202fapportion\u202ftheir time accordingly,\u202fand then\u202froll-up\u202fthe data into\u202fa robust portfolio management system.<\/span>\u202f<\/span>With this information,\u202fAgile and\u202ffinance leaders would better\u202funderstand the true impact their Agile teams\u202fhave\u202fto the bottom line and how to identify\u202fAgile software development costs\u202fto ensure proper\u202fCAPEX categorization and alignment. This detail ensures\u202fthe Agile teams\u202fget the right level of funding and budgeting support for future endeavors.<\/span>\u00a0<\/span><\/p>\n

While this sounds great in theory, who has a solution that can do this?<\/span>\u00a0<\/span><\/p>\n

Planview does.<\/span>\u00a0<\/span><\/p>\n

While Planview cannot provide guidance on how your finance department\u00a0<\/span>looks at<\/span>\u00a0and processes your Agile<\/span>\u00a0development\u00a0<\/span>work<\/span>, we can make the process for costing and capitalizing your Agile software development more\u00a0<\/span>seamless and\u00a0<\/span>automated.<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n

Planview\u2019s Lean and Agile Delivery solution<\/a> can now capture\u00a0<\/span>this\u00a0<\/span>in real time,\u00a0<\/span>translating\u00a0<\/span>work in progress at the story, feature and epic level,\u00a0<\/span>into the cost of creating a\u00a0<\/span>product<\/span>\u00a0or enhancement<\/span>. The simple act of moving a Kanban card can obtain, calculate, and roll-up this information systematically, allowing your organization to easily capture Agile software development capitalization costs and reporting. This automated process removes the need for manual reporting and reconciliation of time sheets, reducing time spent on administrative tasks, and returning development <\/span>capacity\u00a0<\/span>back to the business.<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n

Who doesn\u2019t want an easier and unobtrusive way to deliver important Agile costing information to\u00a0<\/span>F<\/span>inance,\u00a0<\/span>while keeping their developers happy? Seems like a win, win to me.<\/span>\u00a0<\/span><\/p>\n

To learn more about our approach to capitalizing Agile development costs,\u202fdownload\u00a0<\/span>The Challenges of Agile Software Development Costing and Capitalization eBook<\/span><\/a>\u00a0or visit us at<\/span>\u202fplanview.com\/lean-agile-delivery<\/a><\/span>\u202f<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

As a professional working in technology, it amazes me how much business has changed over the years. I\u2019ve seen\u00a0PMOs move from project management to portfolio management. I\u2019ve seen Agile move from the team to team of teams. Now, I\u2019m\u00a0watching\u00a0as we\u00a0question, challenge, and evolve again with the rise of\u00a0Lean Portfolio Management\u00a0and the move to a product-centric…<\/p>\n","protected":false},"author":29,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":2,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[521],"tags":[],"class_list":["post-11139","post","type-post","status-publish","format-standard","hentry","category-lean-agile"],"acf":[],"yoast_head":"\nAgile Costing and Capitalization - Blog | Planview<\/title>\n<meta name=\"description\" content=\"What if finance had a clear-cut way to cost and capitalize Agile efforts? 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