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Mind The Agile Business Gap
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Mind The Agile Business Gap

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The Agile Business Gap is created in medium to large organisations when "Agile" is initiated by an organisations development team. The first part of this Gap is just terminology where "agile" to a …

The Agile Business Gap is created in medium to large organisations when "Agile" is initiated by an organisations development team. The first part of this Gap is just terminology where "agile" to a business has the dictionary meaning of "able to move quickly and easily" while "Agile" to a software development team has a very different meaning. The next part of the Gap is exposed as an "Agile" development team starts to demand a different way of operating beyond the development function and impacts everything from product management activities, business case development, financial planning, marketing messaging and operational planning.

"Agile" development is very effective at delivering smaller usable parts of a product to the market in shorter time frames, yet these shorter timeframes are not immediately compatible with the rest of the enterprise.

About the Speaker:
Nick Coster, co-founder of Brainmates, Australia's leading provider of Product Management consulting and training services. He has been working in various Product Management roles since 1996, across a range of product types and industries. At Brainmates he's the Head of Training services and delivers most of the training courses that Brainmates offers as well as facilitates collaborative workshops with clients. He believes there is a better way to deliver products that customers love and at Brainmates they are constantly learning from our experiences to explore better approaches.

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  • 1. AIPMM Webinar Series www.aipmm.com © AIPMM 2013 www.aipmm.com
  • 2. © AIPMM 2013 www.aipmm.com
  • 3. The Hub Of All Things Product Management  Founded 1998, AIPMM has certified product team professionals in nearly 70 countries  World’s largest professional association for product management, product marketing, and brand management  Provides globally recognized certifications: • Certified Product Manager • Certified Product Marketing Manager • Agile Certified Product Manager • Certified Innovation Leader • Certified Brand Manager © AIPMM 2013 www.aipmm.com
  • 4. Tweet! Use AIPMM: Agile PM: #AIPMM #AgileProdMgmt Follow Brainmates Hector Del Castillo: AIPMM: @brainmates @hmdelcastillo @AIPMM © AIPMM 2013 www.aipmm.com
  • 5. Participate and Win! • Win a 12-month AIPMM standard membership © AIPMM 2013 www.aipmm.com
  • 6. Today’s Speaker Moderator: Hector Del Castillo, CPM, CPMM, PMP Presenter: Nick Coster Head of Training Services Brainmates Pty Limited nick@brainmates.com.au www.brainmates.com.au © AIPMM 2013 www.aipmm.com
  • 7. Mind The Agile Business Gap www.brainmates.com.au
  • 8. Nick Coster Co-Founder and Head of Training Services
  • 9. We are a Product Management Consulting and Training business. We work with product teams across varied industries, companies and organisational sizes.
  • 10. The Agile Business Gap Business Development
  • 11. The Vision of an Agile Business is…
  • 12. The Vision of an Agile Business is… Earlier realisation of business benefits by prioritising for business and market value.
  • 13. The Vision of an Agile Business is… Delivery of smaller and more regular product features to the market.
  • 14. The Vision of an Agile Business is… Increased business collaboration and transparency throughout the development.
  • 15. The Vision of an Agile Business is… Reduction of risk through faster learning from the market.
  • 16. But…
  • 17. … we have observed a repeating problem in many existing business where Agile is implemented.
  • 18. Agile starts well…..
  • 19. ….. but then GAPS start to appear between the business and the development team.
  • 20. These are Agile Business Gaps
  • 21. What causes the Agile Business Gap?
  • 22. Business Definition Page Text
  • 23. Development Definition AGILE
  • 24. Traditional Product Development Idea Business Case Design Build Market Launch 27
  • 25. Traditional Product Development Idea Business Case Design Build Market Fit High Low Likelihood of Market Fit diminishes over time Time Market Launch 28
  • 26. Agile methods are introduced to deliver better products to market faster. 29
  • 27. Agile Product Development Daily Work User Story User Story User Story Sprint 2-4 weeks User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog Sprint Backlog Sprint Tasks Sprint Release Marketable Product
  • 28. But when a development team “Goes Agile” other things break. Why?
  • 29. Agile Product Development Idea The Product Build is only one stage of many required for successful Product Delivery Business Case Design Build Market Launch 32
  • 30. Agile Product Development Idea Business Case Design Build The impacts of introducing Agile will be felt throughout the process… Market Launch 33
  • 31. The Vision of an Agile Business is… ?!
  • 32. Gap 1: Product Management Resource Gap
  • 33. Agile Product Development Idea Business Case Design Build Market Launch 36
  • 34. In an Agile team there is a Product Owner
  • 35. But where do “Product Owners” come from?
  • 36. By default the Agile team turns to the Product Manager…
  • 37. IMPACT: When a Product Manager also acts as the Agile Product Owner, both the product and the Agile project suffers.
  • 38. Tip 1: a) Resource a dedicated Agile Product Owner role. b) The Product Manager and the Agile Product Owner work hand in hand to manage the product delivery.
  • 39. Make it clear! Business “Product Owner” ≠ Agile “Product Owner”
  • 40. Business “Product Owner”: Responsible for Product Profit and Loss $$
  • 41. Agile Product Owner: Responsible for prioritisation of user stories to increase customer and business value.
  • 42. Outcome: Appropriate Product Owner resourcing allows for better communication and delivery through job specialisation.
  • 43. Gap 2: Agile Product Management Gap
  • 44. Agile Product Development Idea Business Case Design Build Market Launch 48
  • 45. Key interface is the Product Backlog. Daily Work User Story User Story User Story Sprint 2-4 weeks User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog Sprint Backlog Sprint Tasks Sprint Release Marketable Product
  • 46. User Story User Story The Product Backlog is a prioritised list of User Stories. User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog But where do User Stories come from?
  • 47. Product Manager converts high level Business Case objectives into more granular requirements.
  • 48. Signoffs and Approvals These documents need to be “complete” before they are signed off. 
  • 49. IMPACT: With no changes to the signoff and approval stages the benefits of an Agile team are wasted.
  • 50. Tip 2 Develop requirements in “Discovery Sprints” of the same length as Agile team Sprints. Signoffs at the end of each Sprint.
  • 51. Highest Business Value Prioritise Business Case outcomes by market segment value. Segment A Segment B Segment C Segment D Lowest Business Value
  • 52. For the highest value segment, storyboard scenarios (or “epics”) Highest Business Value Scenario A1 Highest Business Value Scenario A2 Segment A Scenario A1 Scenario A2 Scenario A3 Scenario A4 Scenario A4 Scenario A3 Lowest Business Value
  • 53. Finally, break the scenario into smaller tasks or User Stories Highest Business Value Segment A Scenario A1 User Story A1-X User Story A1-Y User Story A1-Z Lowest Business Value
  • 54. Highest Business Value Segment A Product Backlog prioritised by business value and testable outcomes. Scenario A1 User Story A1-X User Story A1-Y User Story A1-Z Segment B Scenario B2 User Story B2-X User Story B2-Y User Story B2-Z Segment A Scenario 2 User Story A2-X User Story A2-Y User Story A2-Z Lowest Business Value
  • 55. Outcome: Alignment of sprint cycles delivers regular small parts of Business value with the traditional process.
  • 56. Gap 3: Business Case Gap
  • 57. Agile Product Development Idea Business Case Design Build Market Launch 61
  • 58. Business Case funding is for projects, NOT continuous delivery of a product in the market. Projects Continuous Product Delivery
  • 59. Established Organisations Project Focused Funding. Need to know project costs before project starts. Want to spend as Capital Expenditure for accounting.
  • 60. IMPACT: It is more difficult to get projects funded when the costs are so “Flexible”.
  • 61. Tip 3: a) Estimate the full cost of a single sprint. b) Estimate the # Sprints required for a market release. This limits both costs and time of the project and helps clarify scope.
  • 62. Outcome: Simplifies business case costing. Smaller projects, more often embraces faster learning from the market.
  • 63. Is your Business Agile?
  • 64. Our training courses include: Essentials of Product Management Agile for Product Managers Business Case Writing See more at http://www.brainmates.com.au/training-summary
  • 65. Connect with Brainmates Brainmates Group www.brainmates.com.au Facebook.com/Brainmates info@brainmates.com.au @Brainmates #prodmgmt + 61 2 9232 8147 71
  • 66. Q&A Moderator: Hector Del Castillo, CPM, CPMM, PMP Presenter: Nick Coster Head of Training Services Brainmates Pty Limited nick@brainmates.com.au www.brainmates.com.au © AIPMM 2013 www.aipmm.com
  • 67. Upcoming Courses Singapore, Singapore Washington, DC Singapore, Singapore Washington, DC Follow the links above for more information, or contact: certification@aipmm.com. © AIPMM 2013 www.aipmm.com
  • 68. Please Join Us Again! AIPMM Webinar Series: Why the Way You Collect the Voice of the Customer Matters Ducks & Skirts: Two Families Owning The American Mind! Dec 6th, 12 pm ET Dec 13th, 12 pm ET http://aipmm.com/aipmm_webinars/ Global Product Management Talk: http://www.blogtalkradio.com/prodmgmttalk Stay Informed! Announcements: http://www.aipmm.com/subscribe Call For Speakers: http://www.boldpm.com/call_for_speakers LinkedIn: http://www.linkedin.com/company/aipmm Membership: http://www.aipmm.com/join.php Certification: http://aipmm.com/html/certification/ © AIPMM 2013 www.aipmm.com