Prioritize Features based on driving down risk and delivering business value. This is an Agile Business Analysis tool that supports the nature of Agile Teams while keeping development focused on what matters the most to the business .

1. Feeding the Agile Beast Focusing Development on Delivering Business Value Dean Stevens - Synaptus

2. Agile Methods (Scrum, Lean, Agile, Kanban)Faster and Higher Quality Product Backlog Sprint or Continuous Development Ready Backlog Daily Build Design Release Prioritize Product Understand Organization Deploy Improvements Test Working Software Evaluate On-going Improvement of Development Organization Capability Do Plan Feedback Check Adjust

3. Lean - Agile Software DevelopmentThe Bargain of Agile Better, Faster, Cheaper The Bargain of Agile is faster, more reliable, higher quality software. We also achieve higher trust inside the team. Fit with Customer Desire Result of close customer interaction, continuous delivery, iterative development, and progressive elaboration Result of iterations, Progressive Elaboration, WIP limits, focus on quality, “done-done”, a continuous state of readiness, and refactoring Flow Result of incremental development, visible management tools, measures of cycle time and/or velocity Visibility Result of daily standup, retrospectives, and ceremonies supporting process improvement and learning – includes shared understanding and self organization Collaborative Game

4. The Bargain of Agile The business gets product faster, better, cheaper Teams get environment that promotes high trust and satisfaction How we get there ( a few focus areas) Fit with customer desire Flow Visibility Collaboration We are missing something BIG: Business Value

5. But What’s up?Does business get what they expect? CombinedChanges Value Creation Effectiveness We expect to realize dramatic results But often don’t realize the expected benefit

6. Scrum, Agile, Lean & KanbanDon’t explicitly address Business Value Business Value comes from building what will provide the highest economic return (over time) to the business. Fit with Customer Desire Business Value Flow Business Value Visibility Business Value Collaborative Game Business Value Moving faster is not sufficient – we have to build the right things.

7. Without Business Value…Agile is often about cost reduction Better Use of Technology Faster Development Fewer Defects Better Utilization Productive Talent Pool Cost Structure Faster and Higher Quality is a Cost Reduction Strategy

8. Greater Business Value… Arises from Technology – Business Alignment Business Technology (Technology + Adoption) * Business Need Business Value Revenue Stream - Cost Structure Profit

9. The New Bargain of Agile Business value comes from building what will provide the highest economic outcome (over time) to the business Development is no longer the issue Technology is no longer the obstacle We must feed the agile beast in a way to achieve this business benefit Allows you to operate at decision cycles faster and cheaper than your competition

11. Order the work to drive down risk and generate business value early.

12. What makes the most economic sense – this is not always obvious

13. Risk is a potential obstacle to business value – now or in the future2,500 Business Value Growing Knowledge Growing (risk reduction) 2,000 1,500 $ in k 1,000 500 Value Cost

14. Prioritization is Hard Enoughat the Small Team The Enterprise brings even bigger challenges Multiple Teams, Multiple Products Complex Architectures Coordinating up and down stream in the Enterprise Ensure that the purpose and value proposition of each feature/story is prioritized and understood by development / QA and verified in customer acceptance.

15. Do you see it?

16. Now you see it!

17. The “How” TrapA human condition The Fosbury Flop Faxing isn’t ever “what” someone is doing Everyone’s initial focus is on “how” they do their jobs

18. Strip away the how wordsStable, Shows Underlying Need

19. Overcoming the How TrapCapability Analysis Value Performance Map Should I invest in Create Quote? Where should I focus to drive Business Value and Reduce Risk? How do I determine when it is good enough? What should we NOT work on?

20. Prioritize & Scope the Backlog

21. Backlog Against Capability Model High Value Medium Value Low Value Low Performing Medium Performing High Performing Hard to Change Moderate Effort to Change Easy to Change

22. Request comparison Request focusedhere 3 3 14 These capabilities are not as efficient as possible but are not key to business value and perform acceptably – 2 additional requests were for a new archiving capability Business ValuePerformance Gapis here 0 0 These capabilities are important to business value. Conduct vehicle related financial transactions with dealer does not perform acceptably

23. It’s not Hard to Do Repeat

24. Clarify Business Outcomes – Specify Value Specify Value This is a Focusing Objective Model format used to present the strategic focus for the next six months. This is very flexible and easy to consume. Typically built from existing strategy documents.

26. List features for each group

27. Remember the How TrapCollaborative sessions with management and the end users of the product

28. ID Capabilities – See the end user value stream Controlling Value Added Supporting

29. Assess the model We cleaned up the capability model to get clarity on what specific outcomes were expected. Then we assessed the model to determine what was most important to the business.

30. Business Value Answer a few simple but focused questions Directly aligned with delivering the product strategy? Key to the companies brand? Provide competitive differentiation? Can use more complex and structured approaches i.e., Blitz QFD, The Business Value Game, Real Options Generate Leads

31. Performance Can be done quickly and detail added as needed How is this performing today? Do we understand the level of performance expected? Do we know how to improve? Add detailed attributes when selected for the backlog. Leads to clarity and testability of requirements.

32. Risk – Cost of Delay Can be done quickly and detail added as needed Compliance or business risk? Design, development or delivery risk? Closely tied to other features? Is delay expensive? Executive Mandate? Add detailed attributes when selected for the backlog. Leads to clarity and testability of requirements. Generate Leads

33. Assess the Model – REALLY see the product user VSM Controlling Value Added Supporting

34. Prioritize, Scope, and Communicate The highest value opportunities are now clear Re –assess when something has changed Also, highlights what NOT to work on so we can stay focused

35. Focus, Deliver and Learn Here is a Kanban board used to coordinate across the various business units to ensure training, communication, implementation, and development all stay coordinated. Business stakeholder stand-ups happen in front of this board.

36. Simple but PowerfulAgile Development Combined with Capabilities Analysis Fit with Product Strategy Flow Across the Enterprise Visibility of Prioritization Collaboration with the Business We can bring a method to the Business to collaborate in an Agile way

37. Next Steps Extend Lean – Agile up the Value Stream Show leadership Stop complaining, do something Engage the business

38. Benefits to the Business Feature Management More effective and less effort Profitability, Competitive Advantage Help the business focus on business value Better economic outcomes Faster to market Rethink the Product Strategy Take a fresh look at product strategy Product Innovation So, this is collaboration

39. Benefit to Product Development Backlog Prioritized, Scoped and Communicated Better understanding of features in the context of the product strategy Richer requirements through describing attributes of features and how they work in the end user value stream Less rework and wasted work PD perceived as high value business partner

40. Capability Analysis a proven method Original work documenting a process and techniques … 10 years – over 300 applications - $200 million saved

41. Questions Reach out to Dean Stevens http://www.Synaptus.com Dean.stevens@Synaptus.com We offer Agile Capability & Business Analysis Strategic Project Execution Kanban / Agile Project Management Affiliations David J Anderson and Associates Pillar Technologies

42. Guidance for Organizational Design The design of the delivery organization can be the constraint Align the delivery organization with the technology platform, the product strategy and business model Result is more effective delivery of software that is aligned with realizing the product/business strategy

44. Is there a compliance requirement or other business risk associated with this capability?

45. Does changing this capability introduce a lot of dependent changes or risk?

46. Are we aware of the Design, Development, and Delivery Risk?

47. Is a delay in delivery expensive?

48. Is this an Executive Mandate?

49. More detailed risk analysis can be performed as feature is pulled into active backlogGenerate Leads

50. Summary We have a way to gain alignment on exactly what capabilities are most important to delivering business value. We have a way to gain agreement on business value, performance, and risk. We retain insight and set context for everyone from business management, product management, through development, QA, deployment, support, sales, etc. The model provides guidance for organizational design. When the strategy changes, the model is low friction to update. We can use this to proactively improve collaboration with the business.

51. Using Time as a WeaponThe new Bargain of Agility The primary concept of the new Bargain of Agile is to expend the least resource to accomplish the next objective and to operate at a decision cycle faster than your competition can achieve. Observe Orient Decide Act Unfolding circumstances Implicit guidance and control Implicit guidance and control Understand Culture Tradition New Information Previous Experience Synthesis Action (Test) Observations Feed Forward Feed Forward Decision Feed Forward Outside information Feedback Unfolding interaction with the environment

52. Even with Agile MethodsA lack of context and prioritization… Results in: Increased Risk Unnecessary Rework Delay to Value Missing Important Stuff Redundant Effort Over-Engineering/Design Lack of Testability Not everything we can do has the same business .

53. Why is this hard?The Blind Men and the Elephant Your product could be like that elephant Development Product Management Product Customer You need to develop a shared understanding of what needs to happen to deliver the business value through the product

54. Rethinking the Agile EnterpriseStrategically Aligned, Throughput Focused, Human Powered Sample Clients Contributed / Featured “Dennis Stevens helped us develop a structured approach that connected customer value to execution.” -- Ric Merrifield, Microsoft Corporation “Dennis Stevens helped us align product management, architecture, development, support and implementation. They were an advocate for the success of our business" -- Rob Andes, CTO, Agris Corporation, a Division of John Deere Network Bank Portfolio, Program, Project Management PMI: OPM3 Capability AnalysisHBR: The Next Revolution in Productivity “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 Scaling Agile Development Cutter: Rethinking the Agile Enterprise Cost Cutting and Innovation Re-th!nk