1. Prioritizing For Profit Luke Hohmann CEO, Enthiosys http://www.enthiosys.com/insights-tools/prioritizeforprofit1of3/ http://www.enthiosys.com/insights-tools/prioritizeforprofit2of3/ http://www.enthiosys.com/insights-tools/prioritizeforprofit3of3/

4. Enthiosys Services

7. Cost of a Solving a Problem

8. Creating Your Backlog The first step is figuring out what your market wants!

9. Identifying Market Needs

10. Expressing Market Needs

12. A Market Research Process What are your questions? What will you do with the answers? What data is needed to answer the questions? Acquire the data. Process / analyze the data. Present results and take action.

13. Market Research and User Research Differ Source: MHHE Market Research User Research Focuses on the who & the what Focuses on the how & the why Evaluates what larger samples say Evaluates what smaller samples do Asks people about concepts, opinions and values Observes what people do Asks a market what they will buy Determines how a market will use Focuses on selling & marketing the product Focuses on the requirements of the product Primarily drives product strategy Primarily drives product design

14. Qualitative Research with Innovation Games® Product Box Identify Exciting Features Spider Web Understand Product Relationships

15. Before the Backlog… Roadmaps!

16. Planning Time Horizons Daily Sprint Strategy Portfolio Product Release Exec PM Dev Team 2-4 wk 2-9 mon many mons years many years Iteration Plan Portfolio Map Release Plan Vision & Roadmap

18. Core Artifacts What markets? When? Work to be done in release Work to be done in Sprint markets to serve Daily Sprint Strategy Portfolio Product Release backlog 1. use case 2. bug fix 3. arch change market driven road maps

19. Roadmaps and Backlogs Are Independent But Linked “ infinite” backlog 1. use case 2. bug fix 3. arch change 14. this 29. that 40. the other thing market driven road maps release release release

20. Organizing Your Backlog

22. Organizing the BaFO Backlog Planning Playing In Development In Production Invite Players Receive Invitation Add to Outlook Add to Outlook Invite Fac. Receive Invitation Add stock Phrases Sort Columns Start/Stop Game Join Game Auto buy Write-in Features Paid Games Planner Facilitator Player Planner Facilitator Player

23. What about Epics? Again, multiple forms of prioritization spanning different time frames. Epics = BIG Problems

24. Prioritizing Your Backlog Whether problems, stories, or epics, you need to prioritize the backlog

25. Prioritization Means Ordering Do This Do Other Do That Do This Do Other Do That Do That Do Other Do This Do Other Do That Do This ? ? ?

26. To Order You Need Attributes Do This Do That Flip Chart Exercise: Identifying Prioritization Attributes Attribute1 Attribute2

27. To Sort You Need Values Do This value Do That value value value Flip Chart Exercise: Valuing Prioritization Attributes Attribute1 Attribute2

28. It Helps To Group Attributes Do This yes Do That no no yes Sales Service Internal Stakeholders Does this backlog item directly improve your ability to do your job?

29. Not Everyone is Equal Do This Do That no yes Sales Service Internal Stakeholders Does this backlog item directly improve your ability to do your job? yes no weight 20 10 Sales has twice the influence

30. Problems with ROI-Based Prioritization Don’t be misled…

31. ROI = (Gain – Cost) ------------------ Cost But most people can’t tell you the gain!

32. Determining ROI requires market research. But most backlog items are not what you research. (Market != Customer)

33. Comprehensive market and customer research takes too much time and costs too much money.

34. Agilists like small, independent backlog items. Customers like large, interdependent backlog “groups”.

35. Prioritizing For Profit The groups of attributes that matter the most!

36. Three Core Groups Stakeholder Alignment Strategic Alignment Driving Profit Shows how you’re meeting market needs. Shows how you align with the big picture. Shows how you’re going to make money.

37. Stakeholders Who?

40. Organizational Structure How to get the team consistently involved

41. Whole Product Concept Source: Levitt Generic Product Augmented Product Expected Product Potential Product

42. Whole Product for Technology The Product Hardware Software Networks & peripherals Templates Consulting Where you can show you understand customer’s business problem and its solution Where you can show you have committed to solve problem and have a pre-engineered solution What your in-category competitors have in common with you Source: The Chasm Group Legacy interfaces Pre-sales services Post-sales service & support

43. Product Councils / Whole Product Teams Operations Development Service & Support Legal Marketing Sales Product Mgt

47. Prune the Product Tree -- Preparing Planners define layers and regions so that they will know where players are placing their ideas. Planners choose images to represent growth. Planners select the kind & number of items that can be placed on the image during the game.

48. Place Initial Items Any existing ideas or roadmap items are placed on the tree.

49. Playing the Game! Players collaborate in real-time to place features/benefits (leaves/apples) on the tree. An integrated chat facility enables you to understand player motivations. Players label and describe their ideas All information is recorded and available for analysis

50. Create Interpretations from the Results of Multiple Games Game 1 Results Game 2 Results Interpretation Game results are merged into a new game – which you can edit and shape, further process, or play with additional players.

51. Tabular Representation of Items for Post-Processing Layers and regions enable planners to quickly determine where players have placed their items. You can ask questions like “What are all of the features customers want in 2010?”

53. Step 3: Collaborative Prioritization Where is the “ Voice of the Customer? “ infinite” backlog use case bug fix arch change do this do that the other thing Goal? is to take large list and prioritize to a manageable set. Common Approach Problems Single expert Do they have the knowledge and trust of the organization to make the hard choices? Small groups Tradeoffs are not clear Large groups Insufficient tools!

56. Buy A Feature Online - Preparing A list of features with prices. This example is for product concepts for a pair of internet sunglasses “ Shirt Sizes” help you quickly price your features – or you can enter a price directly!

57. Buy A Feature Game Play Participants. Planner sets their budget. An integrated chat facility enables you to understand participant motivations. Here, we learn that participants dislike learning a rental car’s navigation system. Participant bids. Highly desired items are purchased.

58. Buy A Feature Online - Results Results of many games played, sorted by number of times purchased.

59. Many Ways to Play: Parties, Galas, and Tournaments What is it? Who plays? Facilitated? Number of Items? Number of players? Party A “dinner party”. You select and control participants Yes 12..20 5..8 Gala An “open seating event” Random participants based on a shared URL No 12..20 9+ Tournament A combination of parties! You control and select participants Yes 20+ Based on number of items and number of tournaments

60. Tournament Structure Play many tournaments to control for “bracket strength”.

61. Strategic Alignment Why?

63. Strategic Alignment Do This Do That 1 Global Social Strategic Alignment 1 weight 25 15 Mobile 1 1 5

64. Driving Profit Money?

67. Business Model Framework Driving Profit means prioritizing to your business model! Customer ROI Model Quantifies Return Enforcement Protection of Rights Licensing Terms and Conditions of Use Type of Value Exchange The way you make money Profit Engine Causes More Money Making Events Customer Value Analysis Identifies Value Pricing How much money you make

76. Driving Profit Do This Do That 1 Increase sales via Intern’l partners Lower Our Customers Operational Costs Driving Profit 1 weight 25 15 Lower Our Operational Costs 1 1 5

77. Putting It All Together

79. A Backlog Prioritized for Profit Stakeholder Alignment Strategic Alignment Driving Profit At least one item for every stakeholder. At least one item that aligns to strategy. At least one item that drives profit.