delivering business value with agile
TRANSCRIPT
Dr. David Michel
Delivering Business
Value with Agile
Impact
€
%
18 May 2017
64%of features rarely or ever used
Dr. David Michel
Delivering Business
Value with Agile
Impact
€
%
18 May 2017
Product Backlog
SprintBacklog
ProductIncrement
DailyScrum
Sprint
Hyper-productive teams
Sutherland, J., Downey, S., Granvik, B., (2009) Velocity of MySpace Teams by Sprint [Figure] In Shock Therapy: A Bootstrap for Hyper-Productive Scrum (p. 72)
Hyper-productive teams
Sutherland, J., Downey, S., Granvik, B., (2009) Velocity of MySpace Teams by Sprint [Figure] In Shock Therapy: A Bootstrap for Hyper-Productive Scrum (p. 72)
Peter Drucker
“There is surely nothing quite so
useless as doing with great
efficiency what should
not be done at all
Feature
A
Feature
B
Feature
C
Declaring Victory
Too Soon
Building the right thing
vs
Building the thing right
What does the Agile Manifesto says?
Our highest priority is to satisfy the customer
through early and continuous delivery of
valuable software
“
”
What is it?
Price is what you pay…
…Value is what you get
Warren Buffet
“
Value =Benefits
Cost
Tangibles
Intangibles
If you cannot measure it,
you cannot manage it
• fuzzy numbers lead to fuzzy actions• Fuzzy numbers are more susceptible to manipulation
“”
But…
Not everything that can be
counted counts
And not everything that counts can be
counted
“
”
We cannot measure it…
…Yet, we are comfortable with health-driven practice
e.g. medicine
How to become value-driven?
Questions we are interested in…
• Are we on track?• How are we doing in terms of budget?• Will we be able to finish in time?
Questions we are interested in…
• Did this deliver value to the customer?• What impact did it have on their business?• Are they actually using the software?• Are we building the right thing?
• Are we on track?• How are we doing in terms of budget?• Will we be able to finish in time?
Refinement
Fidelity
http://availagility.co.uk/2009/12/22/fidelity-the-lost-dimension-of-the-iron-triangle/
Iterating vs. Incrementing
• Goal: deliver as much as possible• Output-driven, not outcome
Business Value Model
Andy Pols
Increase Revenue
Reduce Cost
Protect Revenue
Avoid Cost
Chris Matts
Disciplined Learning
• Risk Reduction = Knowledge Acquisition
• “Pay to learn” Iterative
• “build business value” incremental
EPICFeatures
Mr. Product Owner
The Team
The conversations should include:
• How do we assess the impact on the business?
• How do we judge whether this was the right thing to build?
• Did this deliver value to the customer?• What impact did it have on their business?• Are they actually using the software?• Are we building the right thing?
Acceptancecriteria
Done
Done Done
Code completed, tested
Released into production
Done Done Done
Done
Done Done
Code completed, tested
Released into production
Worked out the value/benefit
User Stories were not considered complete until they led to validated learning
“”
• Could we not monitor the inventory before? Hmmm…. Unlikely!
• What impact/change do we expect on the business once this is implemented?
Reformatting the User Story format
We will (benefit/value)For our (role, persona)Because we have (what will the feature do)
As a (role, persona)I want (what will the feature do)So that (benefit/value)
As a user, I want to be able to make changes to my calendar and search without having to type on my iPhone, because it saves me time and hassle
We will save time and hassle, and increase safety for our users, because we have an intelligent personal assistant” that can make changes to calendars and search using a natural language user interface.
Sell with the benefit (outcome)Support with the feature (output)
Establish value-driven relationship with clients
Define “value dials”
Value-driven culture
Define Business value
currency
DevelopValue Metric
Strategy
Define “value dials”
Value-driven culture
Define Business value
currency
DevelopValue Metric
Strategy
Indicators of business value that may or may not map to the financial bottom line.
Define “value dials”
Value-driven culture
Define Business value
currency
DevelopValue Metric
Strategy
Analogous to “story point”, we can estimate how “valuable” a feature is
Define “value dials”
Value-driven culture
Define Business value
currency
DevelopValue Metric
Strategy
Depending on the phase of the project (start-up, scale, mature), the relative importance of the value dials might change
Decision based on value/cost ratio
Cost of raising the cow
Value of beef
Value of leather
Problem of shared cost
ROI analysis best used at the level of epics/themes rather than user stories
Usage as a measure of value
Using a product is, above all, a transaction. The user donates his time and attention, which are supremely valuable commodities. In return, you, the creator, must give her something worthy of her gift to you
”
“
Usage as a measure of value
• Do the users use the feature?• How often to do they use the feature?• For how long do they use the feature?
web technologies are particularly well suited to do this!
But only works if users are not mandated to use the software
Let’s wrap up
Output != Outcome
Fidelity
Scope is the variable
Problem of shared cost
ROI = value/cost
?
Communicate with valuenot features
Backlog size
Building the right thing ?
Value-driven
Iterative
@DavMichel76