An introduction to agile business analysis

An introduction to Agile Business Analysis Techniques
A survey of tools to decide
what to build

Why is this hard?
#1. Business value is unarticulated
#2. We have insufficient views of what matters to our end users and customers
#3. We don’t have a way to focus our efforts
#4. We don’t have clarity of purpose

Make business value assumptions explicit
Business Value Goal Model

Tire Manufacturer
Fix the Tires

Tire Manufacturer
Survive by re-establishing credibility
Thematic Goal
Fix the Tires
Repair Distributor Relationships
Improve PR
Address Morale
Settle Lawsuits
Focusing Objectives

Tire Manufacturer
Survive by re-establishing credibility
Thematic Goal
Fix the tires
Settle lawsuits
Address morale
Repair distributor relationships
Improve PR
Focusing Objectives
Revenue
Customer Satisfaction
Market share
Production levels
Expenses
Standard Objectives

Overcoming Politics Silo’s and Turf Wars, Patrick Lencioni, Jossey-Bass, 2006
Light Weight
Context for conversation and shared understanding about strategy and business value

#2. We have insufficient views of what matters to our end users or customers
Be explicit about what matters to the customer
Customer Value Profile

Customer Value Map Example
Customer Attributes in the Experience Lifecycle

Customer Value Map Example
high
Starbucks
Emphasis
Industry
low
quality
speed
convenience
fashion
selection
ambiance
price
location
serviceexpertise
factors of customer experience

#2. We have insufficient views of what matters to our end users or customers
Customer Value Profile
Charting Your Company’s Future, W. Chan Kim and Renee Mauborgne, HBR, June 2002
Identify Specific Gaps
Context for Performance Conversation
Long Lived Value

#3 We don’t have a view to focus our efforts
Focus on the next most important opportunity
Capability Model

Capability
Describe the target business or product as a set of outcomes – or capabilities.
Verb - Noun
Verb - Noun

Capability
Remains Stable over Time
Pay Employees
Verb - Noun

Capability
Business Value
Pay Employees
KEY
High Value
Medium Value
Low Value

Capability
Business Value
Produce Tires
KEY
High Value
Medium Value
Low Value

Capability
Performance Gaps
Business Value
Produce Tires
KEY
High Value
Medium Value
Low Value
Low Performing
Medium Performing
High Performing

Capability
Performance Gaps
Business Value
Produce Tires
Risk
Risk
Business Risk
Technology Risk
Organizational Risk
Market Risk
KEY
High Value
Medium Value
Low Value
Low Performing
Medium Performing
High Performing
High Risk
Moderate Risk
Low Risk

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

#3 We don’t have a view to focus our efforts
Capability Model
The Next Revolution in Productivity, Merrifield, Calhoun and Stevens, HBR, June 2008
Stable model
Updates as performance improves
Low friction to maintain once established
Easy to revaluate if strategy changes

We don’t have clarity of purpose
Prioritize efforts, not on starting, but on delivering value, then maximize the amount of work not done to deliver that value
A3 Focusing Tool

Maximize the amount of work not done

A3 Problem Solving: Overview

A3 Problem Solving: Outcome

A3 Problem Solving: Analysis

A3 Problem Solving: Plan

We don’t have clarity of purpose
A3 Focusing Tool
Managing to Learn, John Shook, Lean Enterprise Inc., January 2008
Shared understanding of what and why
Initiatives / or epics are very focus and clearly tied to business and customer value
Light weight approach communicates more than detailed requirements

Focus on finishing
B
C
A
3 managers, 3 equally important initiatives.
B
C
A
B
C
A
We try to show progress every month
A
A
A
B
B
B
C
C
C
This way each manager sees progress every period …but the business gets no benefit before period 7.
Or we can establish an organizational priority
A
A
A
B
B
B
C
C
C
Preference is shown but the business realizes benefit sooner
And task switching and interruptions make the difference more stark
A
A
A
B
B
B
C
C
C
What is the impact of an expedite request?

Deciding what to build
Focus on Finishing
With light weight, high signal tools that provide long lived value

A business analysis system for deciding what to build
Articulate Business Value
Explicit Customer Value
Execute with focus and clarity
Focus on the most important opportunities
Results drive learning and priorities

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An introduction to agile business analysis

by Dennis Stevens

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