Value-Based Management and Agile Methods
by John Favaro
Published May 2003
Describes the five principles of Value Based Management (VBM) and details how the principles of VBM are aligned with those of Agile methods: the operating principles embodied in agile methods make operating parameters explicit, while the financial and strategic principles in VBM make profitability parameters explicit. Particular attention is focused on financial metrics for measuring value creation and efficient resource usage. The five principles of VBM are neatly outlined, but there is a lack of consistency in the paper about how they relate to Agile – the paper ends up being an expression of similarity for each separate principle, but personally fails to draw any conclusions about what lessons or interest could be drawn from the similarity between the operating principles of agile and the principles of VBM.
Reviewed for the Agile Alliance
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