September 29, 2016

Can agile projects be value based?

Folks who use an agile methodology to manage their software projects often ask me if they can value price their projects.

The answer is “Yes!” as long as the project has a clearly defined business outcome.

If a project does not have a clearly defined business outcome, you can’t value price it for two reasons:

  1. You’d have nothing to base the price on
  2. You’d have no way to control scope creep

Project management guru Jason Mundok and I just explored this topic at length for an episode of my Ditching Hourly podcast:

Can Agile Projects Be Value Priced?



P.S. Moral of the story: no matter what kind of project management methodology you use, hourly billing is nuts.