how_do_we_do_software_capitalization_when_we_go_to_agile
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how_do_we_do_software_capitalization_when_we_go_to_agile [2020/06/04 11:57] – Removed LINKBACK hans | how_do_we_do_software_capitalization_when_we_go_to_agile [2020/10/08 06:19] (current) – Readability hans | ||
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- | ====== Want to Know More? ====== | + | With these definitions in place we then: |
- | Perhaps the best description of the approach | + | * Mark, label, tag, or otherwise attribute work to indicate whether something |
+ | * Develop an understanding of the fully burdened cost of a Team or Team of Teams. This is calculated by summing | ||
- | {{page> | + | > Fully burdened cost of a person: $150K / year |
+ | > Average number of people on a Team: 8 | ||
+ | > Fully burdened cost of a Team: 8 x $150K = $1200K / year | ||
+ | |||
+ | * Track the velocity of the Team for each Iteration or Sprint. If you are using Scrum you are probably doing this already. If you are using Kanban, you'd track Throughput per unit time (e.g. every two weeks). For the sake of an example, lets say: | ||
+ | |||
+ | > Velocity of the Team for this Iteration: 50 points | ||
+ | |||
+ | * To calculate how much of the Iteration (or Sprint) can be capitalized, | ||
+ | |||
+ | > Sum of Story Points delivered in this Iteration: 10 points | ||
+ | > Percentage work in this iteration that can be capitalized: | ||
+ | > Dollar value of work that can be capitalized for this Iteration: 20% x $1200K / 26 (as $1200 is per year) = $6240 | ||
+ | |||
+ | NOTE: Knowing information like fully burdened cost of a Team is pretty good practice anyway. Iterations (or Sprints) mean we are spending money and so we should be asking ourselves whether we are making good investments; | ||
+ | |||
+ | {{page> | ||
+ | |||
+ | ====== Want to Know More? ====== | ||
+ | * Perhaps the best description of the approach is by [[https:// | ||
+ | * [[how_do_i_convert_points_and_velocity_to_dollars|How Do I Convert Points and Velocity to Dollars?]] | ||
+ | * [[our_estimates_are_terrible|Our Estimates are Terrible!]] | ||
+ | * [[what_can_we_do_to_improve_our_point_based_estimates|What Can We Do To Improve Our Point Based Estimates? | ||
{{tag> | {{tag> | ||
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