agile costs, but who's counting?

@ProjectAcc_AU

Agile costs,but who’s counting?

Dina Gofman & Lourdes Duggineni

@ProjectAcc_AU

Wikipedia

Project accounting (sometimes referred to as job cost accounting)

is the practice of creating financial reports specifically designed to

track the financial progress of projects, which can then be used by

managers to aid project management.

“ “THIS IS TERRIBLE!!

@ProjectAcc_AU

Project Accounting AustraliaProject Accounting is:

A specialised form of accounting that corresponds to the ever-

evolving needs of project delivery, which helps adequately track,

report and analyse financial results and implications. “ “DRY, BUT TO THE POINT.

@ProjectAcc_AU

Dina Gofman

Co-founder

ProjectAccounting.com.au

Lourdes Duggineni

Co-founder

Project Accounting AustraliaFounders

@ProjectAcc_AU

Project methodology01

Why Project Accountants?

Management & financial accounting

skills (& sometimes BA skills)

Non-cyclical nature of projects

@ProjectAcc_AU

versus

@ProjectAcc_AU

KEY TAKEAWAYS

Better understanding of the critical role of accounting

in project management.

Correlation between Sprint estimation and financial

reporting.

Pitfalls & successes in a large scale agile roll-out.

@ProjectAcc_AU

Product Owner

Project Accounting = Success

Accountant

@ProjectAcc_AU

Pre-Sprint 0

Your relationship with project accounting:

Scrum Ecosystem

Sprint Planning

Retrospectives

Project Sponsor

SCRUM Master

SCRUM Team

Product Owner

PrioritisationBeneficiary

Delivery

Project

Accountant

Executive

@ProjectAcc_AU

Profit & Loss Statement:

Add Contents Title

= Profit/Loss

Balance Sheet:

= Owners’ Equity + Profit/Loss

Revenue

Expenses

Assets

General TermsProject Accounting 101

Liabilities

CAPEX OPEX

@ProjectAcc_AU

How will you account

for SCRUM?

01 02 03 04 05

PRE-SPRINT 0Considetrations before you start your project

@ProjectAcc_AU

When was the initiative

you are passionate

about denied funding?

@ProjectAcc_AU

This is what we planned:

ASSETEXPENSE

Idea generation

Analysis

Exploration

Inception

Sprint 0

Backlog of requirements

Delivery

Feature 1 Feature 2 Feature 3

Design

Develop

Implement

Design

Develop

Implement

Design

Develop

Implement

ASSETASSET

$10K $10K $10K $10K $10K

CAPEX BUDGET = $40K P&L BUDGET = $10K

@ProjectAcc_AU

This is what happened:

ASSETEXPENSE

Idea generation

Analysis

Exploration

Inception

Sprint 0

Backlog of requirements

Delivery

Feature 1 (SUCCESS) Feature 2 (FAIL) Feature 3 (SUCCESS)

Design

Develop

Implement

Design

Develop

Rework

Design

Develop

Implement

ASSETEXPENSE

$10K $10K $10K $10K$10K

CAPEX SPEND = $30K P&L SPEND = $20K

@ProjectAcc_AU

Sprint estimation and

financial reporting

@ProjectAcc_AU

Old School vs New School

Budgets vs MVPs

Month-end vs Sprints

Story Points = $$

@ProjectAcc_AU

Agile (Relative) EstimationSCRUM Ways of Working

Sprint 1

2 Points

= 4 minutes

Sprint 2

3 Points

= 5-7 minutes

= $5-7

Average = $6

Total Project Estimate = 5 Points = 10 minutes = $10 worth of labour

+ Cost of fruit & equipment (non-labour cost) of $5

+ Cost of refrigeration (OPEX) of $2

@ProjectAcc_AU

Profit & Loss Statement:

Add Contents Title

= Loss of $2

Balance Sheet:

= Owners’ Equity $17 – Loss $2

Revenue

Expenses $2

Assets $15

Budgets vs Relative EstimationFruit Salad

Liabilities

CAPEX OPEX

@ProjectAcc_AU

Time tracking

Project portfolio budget

Steering Group

PMOSystems

PA Methodology ModulesBudgets vs MVPs

@ProjectAcc_AU

When do

you look at

instructions?

@ProjectAcc_AU

Time tracking

Steering Group

PMOSystems

PA Methodology Modules

@ProjectAcc_AU

Common

pitfalls &

successes in

large scale

agile roll-outs

Case Study of

Australia’s

largest insurer

@ProjectAcc_AU

Cost management

Benefits realisation

Portfolio prioritisation

The Key is to LearnDon’t wait until it’s too late

@ProjectAcc_AU

Consulting, Training &

Stationary

Loss of visibility of

scope, spend and risk

Concept of cross-

functionality

Time tracking

Levers to STOP, START &

CONTINUE

Governance

Supporting tools

TIME and MONEY

Key LearningsThe Insurer’s Scrum Journey

@ProjectAcc_AU

Time tracking

Lean Governance

Orchestration

Project AccountingSystems

SuccessesResults of the Transformation

@ProjectAcc_AU

Thank you!

For further info, send a SMS with

YOUR NAME

& EMAIL

0411 202 307

@ProjectAcc_AU

Proudly supported by:

Business Solutions

ZEPA Technologies

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