Skip to main content

Tracking project revenue in Scrum way using JIRA

Tracking project revenue in Scrum helps project manager to monitor and forecast the project.


As a manager you will be closely working with Sales team and Finance team for creating SOW.

You should have the job level rate card for the project as below and calculate the Blended Rate ($/hr).

In this revenue calculation we are running project in Scrum and using JIRA tool. 


Blended Rate = average of all above Rate.

Please note down below formula for find the project running in positive revenue or running in negative revenue.

Planned Cost = Planned Hours*Blended Rate

Planned Margin = (Planned Revenue-Planned Cost)/Planned Revenue*100

Actual Cost = Actual Hours*Blended Rate

Planned Margin = (Planned Revenue-Planned Cost)/Planned Revenue*100

Actual Margin = (Planned Revenue-Actual Cost)/Planned Revenue*100

Delta = Actual Margin - Planned Margin

When Delta is Positive value the project running with Positive margin and when Delta value is negative the project running with Negative Margin.

Important Note: The above decision need to be considered based on the % of task completion. For example in the first example (JIRA-123) Delta value is positive but the % of task is 50% instead of 100% then the we need consider this as negative margin. The status need to tracked during daily stand up.

Use below fields in JIRA for tracking time:

  • Original Estimate 
  • Remaining Estimate


 

Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

New way of product development

Today is the era of fast-paced world and competitive world. Companies are realizing that the old sequential approach to developing new products won’t get the job done and product can’t be reached to market when compared to competitors. The 4 stages of product development are as follows – R&D, Growth, Maturation, and Decline. Instead of sequential approach, companies are using holistic approach – as in rugby game, the ball gets passed within the team as it moves as a unit up the field. This holistic approach has six characteristics: 1)     Build-in-instability 2)   Self-organizing project teams 3)   Overlapping development phases 4)   Multi-learning 5)   Subtle (very clear and strong) control 6)   Organizational change to explore and learning The above six characteristics forming a fast and flexible process for new product development with advantage of act as a change agent, creative, market driven ideas, flexi...
Post a Comment
Read more

Product Manager vs Product Owner

Both the product manager and the product owner work towards a common goal, to build and improve products that create meaningful value for customers and all stakeholders within the company. This usually happens by delivering and optimizing product features. Product Manager Product Owner The product manager discovers what users need, prioritizes what to build next, and rallies the team around a product roadmap. The product owner is responsible for maximizing the value of the product by creating and managing the product backlog. This person creates user stories for the development team and communicates the voice of the customer in the Scrum process.      Product Manager and Product Owner's work on below vacuum. Product manager focus on: Business Strategy Long term Product Vision Long term Product Strategy Product Roadmap Alignment with Product Owner Product owner focus on: Release Plan (Product Backlog ie: ...
Post a Comment
Read more

Data & Analytics

Data and analytics is the management of data for all uses and the analysis of data to drive business processes and improve business outcomes through more effective decision making and enhanced customer experiences. Four Types of data analytics: 1.         Predictive data analysis Predictive analytics may be the most commonly used category of data analytics. Businesses use predictive analytics to identify trends, connections between data, and relationship between data. 2.        Prescriptive data analytics Prescriptive analytics is where AI and big data combine to help predict outcomes and identify what actions to take. Prescriptive analytics can help answer questions such as “What if we try this?” and “What is the best action?” You can test the correct variables and even suggest new variables that offer a higher chance of generating a positive outcome. 3.        Diagnostic data analyti...
Post a Comment
Read more