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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
Sprint
Backlog
Product
Increment
Daily
Scrum
Sprint
Hyper-productive teams
Sutherland, J., Downey, S., Granvik, B., (2009) Velocity of MySpace Teams by Sprint [Figure] In Sho...
Hyper-productive teams
Sutherland, J., Downey, S., Granvik, B., (2009) Velocity of MySpace Teams by Sprint [Figure] In Sho...
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 ...
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 ...
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 t...
Questions we are interested in…
• Did this deliver value to the customer?
• What impact did it have on their business?
• A...
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
Gojko Adzic
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”
 incr...
EPIC
Features
Mr. Product Owner
The Team
The conversations should include:
• How do we assess the impact on the
business?
...
• Did this deliver value to the customer?
• What impact did it have on their business?
• Are they actually using the softw...
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 we...
• Could we not monitor the inventory before?
Hmmm…. Unlikely!
• What impact/change do we expect on the
business once this...
Reformatting the User Story format
We will (benefit/value)
For our (role, persona)
Because we have (what will the
feature ...
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
...
Define
“value dials”
Value-driven culture
Define
Business value
currency
Develop
Value Metric
Strategy
Indicators of
busin...
Define
“value dials”
Value-driven culture
Define
Business value
currency
Develop
Value Metric
Strategy
Analogous to
“story...
Define
“value dials”
Value-driven culture
Define
Business value
currency
Develop
Value Metric
Strategy
Depending on
the ph...
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 epi...
Usage as a measure of value
Using a product is, above all, a
transaction. The user donates his time
and attention, which a...
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...
Let’s wrap up
Output != Outcome
Fidelity
Scope is the variable
Problem of shared cost
ROI = value/cost
?
Communicate with value
not feat...
@DavMichel76
david.michel@tessella.com
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
Delivering business value with Agile
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Delivering business value with Agile

How to deliver business value with Agile.

Delivering business value is arguably the most important aspect of project management and Agile approaches are supposedly the best tools available for making sure business benefits are being realised by prioritising requirements based on what adds more value to the customer. However, while the ceremonies of Agile practices such as in Scrum are easy to follow, defining and measuring business value is hard, which can lead to team focusing on "building the thing right" rather than "building the right thing", falling short of the promises of Agile delivery. In this talk, I'll unpack the main reasons behind this problem and bring some ideas on how teams and organisations can become more value-driven.

https://www.youtube.com/watch?v=PYS2Cm0gR_c

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Delivering business value with Agile

  1. 1. Dr. David Michel Delivering Business Value with Agile Impact € % 18 May 2017
  2. 2. 64%of features rarely or ever used
  3. 3. Dr. David Michel Delivering Business Value with Agile Impact € % 18 May 2017
  4. 4. Product Backlog Sprint Backlog Product Increment Daily Scrum Sprint
  5. 5. 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)
  6. 6. 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)
  7. 7. Peter Drucker “There is surely nothing quite so useless as doing with great efficiency what should not be done at all
  8. 8. Feature A Feature B Feature C
  9. 9. Declaring Victory Too Soon
  10. 10. Building the right thing vs Building the thing right
  11. 11. What does the Agile Manifesto says? Our highest priority is to satisfy the customer through early and continuous delivery of valuable software “ ”
  12. 12. What is it?
  13. 13. Price is what you pay… …Value is what you get Warren Buffet “
  14. 14. Value = Benefits Cost
  15. 15. Tangibles Intangibles
  16. 16. If you cannot measure it, you cannot manage it • fuzzy numbers lead to fuzzy actions • Fuzzy numbers are more susceptible to manipulation “ ” But…
  17. 17. Not everything that can be counted counts And not everything that counts can be counted “ ”
  18. 18. We cannot measure it… …Yet, we are comfortable with health-driven practice e.g. medicine
  19. 19. How to become value-driven?
  20. 20. 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?
  21. 21. 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?
  22. 22. Refinement Fidelity http://availagility.co.uk/2009/12/22/fidelity-the-lost-dimension-of-the-iron-triangle/
  23. 23. Iterating vs. Incrementing
  24. 24. • Goal: deliver as much as possible • Output-driven, not outcome
  25. 25. Gojko Adzic
  26. 26. Business Value Model Andy Pols Increase Revenue Reduce Cost Protect Revenue Avoid Cost Chris Matts
  27. 27. Disciplined Learning • Risk Reduction = Knowledge Acquisition • “Pay to learn”  Iterative • “build business value”  incremental
  28. 28. EPIC Features 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?
  29. 29. • 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? Acceptance criteria
  30. 30. Done Done Done Code completed, tested Released into production
  31. 31. 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 “ ”
  32. 32. • Could we not monitor the inventory before? Hmmm…. Unlikely! • What impact/change do we expect on the business once this is implemented?
  33. 33. 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.
  34. 34. Sell with the benefit (outcome) Support with the feature (output)
  35. 35. Establish value-driven relationship with clients Define “value dials” Value-driven culture Define Business value currency Develop Value Metric Strategy
  36. 36. Define “value dials” Value-driven culture Define Business value currency Develop Value Metric Strategy Indicators of business value that may or may not map to the financial bottom line.
  37. 37. Define “value dials” Value-driven culture Define Business value currency Develop Value Metric Strategy Analogous to “story point”, we can estimate how “valuable” a feature is
  38. 38. Define “value dials” Value-driven culture Define Business value currency Develop Value Metric Strategy Depending on the phase of the project (start-up, scale, mature), the relative importance of the value dials might change
  39. 39. Decision based on value/cost ratio
  40. 40. 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
  41. 41. 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 ” “
  42. 42. 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
  43. 43. Let’s wrap up
  44. 44. Output != Outcome Fidelity Scope is the variable Problem of shared cost ROI = value/cost ? Communicate with value not features Backlog size Building the right thing ? Value-driven Iterative
  45. 45. @DavMichel76 david.michel@tessella.com

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