deciding what to build
DESCRIPTION
This approach connects product strategy to business strategy, customer value, and risk. It provides the structure for feedback and rapid reassessment of the product road map (backlog). the presentation then demonstrates how to reduce the miscommunication, over analysis, over design, and over engineering that leads to scope creep and misalignment between the desired solution and what is actually delivered.TRANSCRIPT
@dennisstevens
Deciding “What” to Build
@dennisstevens
Connecting the Strategy and ExecutionHBR: The Next Revolution in Productivity
The Agile EnterpriseStrategically Aligned, Throughput Focused, Human Powered
Agile in the EnterpriseCore Team Member
Exploiting Agile DevelopmentCutter: Rethinking the Agile Enterprise
Agile Business AnalysisAgile Extension to the BABOK
“In a time growth and change, Dennis Stevens helped us identify and develop the capabilities needed to deliver technology that was critical to our success." -- Mike Rouse, COO, Security First Network Bank
“Dennis Stevens helped us align business analysis, architecture, development, QA, support and implementation. He was an advocate for the success of our business" -- Rob Andes, CTO, John Deere
“Dennis Stevens helped us develop a structured approach that connected customer value to execution. He helped us deliver over $200 million in value to our customers.” -- Ric Merrifield, Microsoft Corporation • PMI Agile LIG
• PMI Agile CoP• New PMI Agile offering
Feb 24
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Do you see it?
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Now you see it!
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The “How” TrapA human condition
• The Fosbury Flop
• Sending a fax isn’t ever “what” someone is doing
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With a How FocusEffort Expands Faster then Value
#1. Undifferentiated Scope
#2. Over analyze and over design
#3. Delivery is over engineered
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#1 UNDIFFERENTIATED SCOPE
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What is Business Value?
Increase or protect revenue, decrease or prevent costs, increase service, maintain compliance or prepare for the
future in alignment with the business strategy
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Business Value Goal Model Example
Survive by re-establishing
credibility
Fix the tires Settle lawsuitsAddress morale
Repair distributor
relationshipsImprove PR
Revenue Customer SatisfactionMarket shareProduction
levelsExpenses
Focusing Objectives
Standard Objectives
Business Value Goal
Tire Manufacturer
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What is Customer Value?
What the customer perceives as important and is willing to pay for.
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Customer Value Map Example
Em
ph
asis
quality
high
low
factors of customer experience
speed convenience fashion selection ambiance price location serviceexpertise
Starbucks
Explicit performance gap
We are here
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Verb - NounJump Over Bar
Notify Customer
Describe the product as a set of outcomes – or capabilities.
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AnotherOutcome
RiskBusiness RiskTechnology RiskOrganizational RiskMarket Risk
Risk
Explicit Performance
Gaps
Customer Value
High Value
Medium Value
Low Value
KEY
Business Value
Low Performing
Medium Performing
High Performing
High Risk
Moderate Risk
Low Risk
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1.0 Employee Vehicle Program
1.1 Develop Products and Services
1.1.1 Product/Service Management
Determine Purchase Price
1.2 Deliver Products and Services
1.2.1 Capture Product Requirements
Configure Vehicle for Purchase
1.2.2 Procurement/Secure Supply
Order Vehicle
1.2.3 Produce Product
Process VehicleMove Vehicle to Delivery Location
Associate Pickup of Evaluation Unit
1.2.4 Plan Employee Vehicle Program
Establish Vehicle Types Available
for Evaluation Unit
Establish Evaluation Unit
Deduction Amount
1.2.5 Manage Inventory
Manage Evaluation Unit
Inventory
1.2.6 Coordinate and Perform Service
1.2.6.1 Coordinate Employee Vehicle Program
Assign Vehicle to Evaluation Unit
Request
Select Vehicle for Evaluation
Assign Vehicle to Purchase Request
Place Evaluation Unit In Service
Return of Evaluation Unit
Remove Evaluation Unit
from Service
Change an Associate Vehicle Purchase Request
1.2.6.2 Manage Vehicle Assets
Dispose of Company Owned
Vehicle
Inspection of Evaluation Unit
Place Vehicle in Dealer Inventory
Validate Vehicle Availability
Check Vehicle Status By Associate
1.2.7 Track Delivery Performance
Track Vehicle Status
1.2.8 Delivery Accounting
Conduct Vehicle-Related Financial Transactions with
Dealer
Manage Accounting
Entries for Vehicle Inventory
1.3 Plan and Manage Enterprise
1.3.1 Human Resources
1.3.1.1 Employee Vehicle Program
Authenticate Associate
Validate Associate Eligibility
Complete Evaluation Unit
Survey
Approve Evaluation Unit
Request
Complete Evaluation Unit
Request
Approve Associate Vehicle Purchase Request
Complete Associate Vehicle Purchase Request
Cancel Associate Vehicle Purchase
Request
Implement Payroll Deduction for
Evaluation Unit
Have a road map
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AnotherOutcome
Specific Initiative To Achieve a Specific Outcome
At the end of the effort – that outcome should be recognizable
High Value
Medium Value
Low Value
Low Performing
Medium Performing
High Performing
High Risk
Moderate Risk
Low Risk
KEY
@dennisstevens
AnotherOutcome
High Value
Medium Value
Low Value
Low Performing
Medium Performing
High Performing
High Risk
Moderate Risk
Low Risk
KEY
When the performance goal is achieved
We don’t need to invest here anymore
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Revisit the road map frequently
• If the outcome isn’t realized – either your understanding of the model is wrong – or you didn’t do a good job with the initiative
• When lost it the forest, if the map doesn’t agree with the terrain, in all cases believe the terrain
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#1 Undifferentiated Scope
Tips• Articulate business value• Articulate customer value• Make value explicit• Have a road map• Revisit the road map frequently
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#2 OVER ANALYZE AND OVER DESIGN
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Start with the simplest thing that might possibly work
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Reduce risk early – focus on next highest increment of value
ValueKnowledge Growing (risk reduction)
500
1,000
1,500
2,000
2,500
Cost Value
$ in
k
Trim the tail
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Discovery
• An increment whose purpose is to prove a technology or gather feedback. May be a technology proof or a prototype.
• Prove it before investing more then needed
Reduce risk early – focus on next highest increment of value
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Goat Path
• A story that defines the absolute minimum required to walk a happy path of an activity from one end to the other. Can include supporting technical stories.
When we need rapid feedback to address business risk
Reduce risk early – focus on next highest increment of value
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Gravel Road• A story that is robust enough to cover multiple options and paths but whose
implementation can be broken by extraordinary uses.Paved Road• A story that is solid and can withstand high capacity and resilient to frequent use.Super Highway• A story with lots of bells and whistles that is tightly integrated into other uses,
intuitive and robustly functional.
Allows trimming the tail
Do we always need the Super Highway?
Reduce risk early – focus on next highest increment of value
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#2 Over analyze and over design
Tips• Start with the simplest thing that might possibly work• Reduce risk early with as little investment as possible• Be focused on a small specific objectives
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OVER ENGINEERED
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#3 Over Engineered
• Until something is delivered it is all untested assumptions
• Strategic decisions become concrete at the implementation level – make sure delivery is focused on value
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#3 Over Engineered
• The runway is more important than the road map
• Make sure the right context (architecture, value, schedule, costs) exists for delivery
• Make work ready so the next most important thing can be worked on
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#3. Solutions are over engineered
Tips• Establish context and deliver early and frequently• Make work ready so the next most important thing can be worked on
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Tips
#1. Undifferentiated Scope• Articulate business value• Articulate customer value• Make value explicit• Have a road-map and test your assumptions
#2. Over analyze and over design• Start with the simplest thing that might possibly work• Reduce risk early with as little investment as possible• Be focused on a small specific objectives
#3. Solutions are over engineered• Establish context and deliver early and frequently• Make work ready so the next most important thing can be worked on
Questions
Dennis StevensPresident, SynaptusEnabling the Agile [email protected]