ScrumMaster Value

When considering the “value” of a ScrumMaster, there is a clear evidence of the overall value of an effective ScrumMaster.

Here are some extra things to read if you’re considering investing in a great ScrumMaster or Product Owner:

Here are some data points (rounded) from Joe Little:

Team Cost per Year $1,000,000
Ratio of Bus. Value to Cost 3
Curr Bus. Value produced per Year $3,000,000
Cost of Curr ScrumMaster (annual) $125,000
Cost of Better SM $150,000
Net Investment in new SM $25,000
Inc in Bus. Value in first Year 100.00%   beg yr to end-of-year
Assume: This issolely from increase in Team velocity due to removing impediments
Rate of increase in first year steady
Net Increase in First Year $1,500,000
Cost of First Yr Impediment Removal $200,000
TOTAL RETURN (First Yr) $1,500,000
Return %  (Return to Investment) 667% First year

One Reply to “ScrumMaster Value”

  1. While I completely agree that a quality Scrum Master [as well as top notch people in other positions] provides a significant ROI, I have an issue with the “100% Inc in Bus. Value in first Year solely from increase in Team velocity due to removing impediments”.

    There are certainly (in fact by definition) low performing teams out there where doubling the business value produced can/will happen. In this case, the basis is that they are already paying $125K for a Scrum master, which is well above the median loaded cost in the USA for the position. Unless they are overpaying and under-receiving, the team should already be delivering business value in excess of the median as well.

    I have been providing software consulting services for many a year [I founded Dynamic Concepts over 32 years ago, the same year the IBM AT was introduced]. Based on my own experiences as well as cases where the numbers have been measured the improvements are much lower…but still often represent a significant improvement in ROI – typically in the 15% range when measured over a 3 year interval.

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