Steve Mayner's presentation at Agile Asia about what is business value, what to measure, some techniques to prioritize and order the Product Backlog or Portfolio Backlog.
2. SAFe® Senior Program Consultant
Scaled Agile, Inc.
steve.mayner@scaledagile.com
@stevemayner
stevemayner
#aafhyd #SAFe #WhereIsART
3. OUR HIGHEST PRIORITY IS TO
SATISFY THE CUSTOMER THROUGH
EARLY AND CONTINUOUS DELIVERY
OF VALUABLE SOFTWARE.
Agile Manifesto, Twelve Principles
AGILEMANIFESTO.ORG/PRINCIPLES
“
”
(The Lodgeat Snowbird Ski Resort, where Agilewas born…)
16. How do leaders know which indicators of business
value to follow in order to achieve the desired
business outcomes?
Schwartz, M. (2016). The art of business value. Portland, OR: IT Revolution
24. #1-Take an economic view
#2-Apply systems thinking
#3-Assume variability; preserve options
#4-Build incrementally with fast, integrated learning cycles
#5-Base milestones on objective evaluation of working systems
#6-Visualize and limit WIP, reduce batch sizes, and manage queue lengths
#7-Apply cadence, synchronize with cross-domain planning
#8-Unlock the intrinsic motivation of knowledge workers
#9-Decentralize decision-making
25. If you only quantify one thing, quantify the
—Donald G. Reinertsen, Principles of Product Development Flow
26. weighted-shortest job
(WSJF)
Reinertsen, D. (2012). The principles of product development flow: Second generation lean
product development. Redondo Beach, CA: Celeritas Publishing
29. Multi-Criteria
Decision Analysis
(MCDA)
…a general framework for
supporting complex decision-
making situations with multiple and
often conflicting objectives that
stakeholders groups and/or
decision-makers value differently
Belton, V., & Stewart, T. (2002). Multiplecriteria decision analysis: An integrated approach. Springer.
Multiple stakeholders
Structured decision alternatives
Facilitatedecision dialogue
Quantify categorical criteria
Unify plural value dimensions
33. 5 – directly enables product to go to market
4 – direct precursor to releasing product to market
3 – strongly improves ability to launch
2 – moderately improves ability to launch
1 – nominally improves ability to launch
0 – no relationship to launching the nextgen product
Scoringdefinition example
34. 5 – required to comply with regulations, laws, directives
0 – not required for compliance
Scoringdefinition example
For this decision analysis technique, an ordinal scale (Likert) is more appropriate than interval scale (Fibonacci)
38. Criteria Weight Scoring Definitions Raw
Score
Weighted
Score
Launch NextGen Product 30% 5 – directly enables product to go to market
4 – direct precursor to releasing product to market
3 – strongly improves ability to launch
2 – moderately improves ability to launch
1 – nominally improves ability to launch
0 – no relationship to launching the nextgen product
3 9
Cost Savings 20% 5 – Immediate AND >=$100M
4 – Within 1 year AND >=$25M
3 – Within 2 years AND >=$10M
2 – Within 3 years AND >=$1M
1 – Within 5 years OR >= $100K
0 – No cost savings
4 8
Compliance 20% 5 – Required to comply with regulations, statutes, directives
0 – Not required for compliance
5 10
Decrease employee
turnover
10% 5 – Directly reduces turnover >=25%
4 – Directly reduces turnover between 18% to 24%
3 – Directly reduces turnover between 10% to 17%
2 – Directly reduces turnover between 1% to 10%
1 – Indirectly reduces turnover
0 – No connection to employee turnover
2 2
Increase customer
satisfaction
10% 5 – Provides a top 5 most requested product capability
4 – Provides a top 50 most requested product capability
3 – Directly resolves a top 5 most commonly reported issue
2 – Directly resolves a top 50 most commonly reported issue
1 – Provides unrequested product/service enhancement
0 – No connection to customer satisfaction
4 4
Total Value Points 33Apply to epics, enablers, capabilities, features