What is value


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A recording is available here: http://www.youtube.com/watch?v=ESOaDiv3lXA

The concept of "value" is central to agile and lean software development - but how do we decide what is valuable, and on what basis? I will argue that determining value is the responsibility of everyone - not just the "product owner" - and that in order to deliver value, the most important thing is to be able to measure it transparently, and to establish a fast feedback loop so we can quickly determine if what we're doing is in fact valuable. In this talk I will discuss several approaches to measuring value, how to maximize creating it, and how doing so affects the way teams work.

Published in: Technology
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  • Interesting. I blogged about value a couple of years back: http://www.leanway.no/the-value-of-value/
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What is value

  1. 1. what is value? @jezhumble | jez@thoughtworks.com January 2013 | #almsummit http://thoughtworks-studios.com/Friday, December 7, 12
  2. 2. product manager activities • work out what to build • prioritization and estimation • give feedback at showcases scrum (as I understood it)Friday, December 7, 12
  3. 3. agile manifesto Our highest priority is to satisfy the customer through early and continuous delivery of valuable softwareFriday, December 7, 12
  4. 4. shareholder value The directors of a public corporation have a fiduciary duty to maximize profits Jensen and Meckling, Theory of the FirmFriday, December 7, 12
  5. 5. SpaceX “The company was founded in 2002 by Elon Musk to revolutionize space transportation and ultimately make it possible for people to live on other planets.”Friday, December 7, 12
  6. 6. Jack Andraka His parents, he says, never really answered any of the questions they had. Go figure it out for yourself, they would say. “I got really into the scientific method of developing a hypothesis and testing it and getting a result and going back to do it again.”http://www.forbes.com/sites/bruceupbin/2012/06/18/wait-did-this-15-year-old-from-maryland-just-change-cancer-treatment/Friday, December 7, 12
  7. 7. shareholder value Shareholder value is the dumbest idea in the world … [it is] a result, not a strategy … Your main constituencies are your employees, your customers and your products. Jack Welch | http://www.ft.com/cms/s/0/294ff1f2-0f27-11de-ba10-0000779fd2ac.htmlFriday, December 7, 12
  8. 8. what do customers want? users are unable to articulate exactly what they need yet they seem insistent about what they don’t want ...once they see it Orzen and Bell, Lean IT p48Friday, December 7, 12
  9. 9. lean startup Have a vision for your product, make business model Build the minimum viable product Test and iterate Pivot when you reach a local maximumFriday, December 7, 12
  10. 10. process Ideas optimize for lead time Learn Build (time through the loop) Data Code Measure Eric Ries, “The Lean Startup” http://bit.ly/8ZoX5FFriday, December 7, 12
  11. 11. the problem that sounds like a load of crapFriday, December 7, 12
  12. 12. Bernard Gagnon Shareholder value is the dumbest idea in the world … [it is] a result, not a strategy … Your main constituencies are your employees, your customers and your products. Jack Welch | http://www.ft.com/cms/s/0/294ff1f2-0f27-11de-ba10-0000779fd2ac.htmlFriday, December 7, 12
  13. 13. http://www.flickr.com/photos/subtle_devices/849361922/Friday, December 7, 12
  14. 14. Friday, December 7, 12
  15. 15. Apple I on display at the Smithsonian, taken by Ed UthmanFriday, December 7, 12
  16. 16. apple macintosh “Instead of arguing about new software ideas, we actually tried them out by writing quick prototypes, keeping the ideas that worked best and discarding the others. We always had something running that represented our best thinking at the time.” “The Macintosh Spirit” | http://www.folklore.org/StoryView.py?project=Macintosh&story=The_Macintosh_Spirit.txtFriday, December 7, 12
  17. 17. personas Target by Jasper Johns | http://www.flickr.com/photos/nostri-imago/3137422976/Friday, December 7, 12
  18. 18. measuring value A/B testing Show your prototype to real users Measure business metrics Surveys, social media etc.Friday, December 7, 12
  19. 19. hypothesis-driven delivery We believe that [building this feature] [for these people] will achieve [this outcome]. We will know we are successful when we see [this signal from the market]. Jeff Gothelf “Better product definition with Lean UX and Design” http://bit.ly/TylT6AFriday, December 7, 12
  20. 20. what is “done”? “user stories were not considered complete until they led to validated learning” Grockit | Eric Ries, The Lean StartupFriday, December 7, 12
  21. 21. votizen • 1.0: 6 weeks, $1206 • 4.0 18 months, $120k, got seed fundinghttp://www.slideshare.net/startuplessonslearned/david-binetti-lean-startup-votizen-pivot-at-sllconf-2011Friday, December 7, 12
  22. 22. will people use it? “Using a product is, above all, a transaction. The user donates her time and attention, which are supremely valuable commodities. In return, you, the creator, must give her something worthy of her gift to you.” http://www.stevenpressfield.com/2009/10/writing-wednesdays-2-the-most-important-writing-lession-i-ever-learned/Friday, December 7, 12
  23. 23. product manager Create and communicate shared vision Work with team to define measurements Run experiments to learn if your ideas are any good Optimize your process for cycle time Quality is everybody’s responsibilityFriday, December 7, 12
  24. 24. product development inception: define vision, mvp deliver mvp, get feedback keep delivering small incrementsFriday, December 7, 12
  25. 25. postscript: individual productivity Lines of code ? # bugs found? Hours worked?Friday, December 7, 12
  26. 26. cost “Even in projects with very uncertain development costs, we havent found that those costs have a significant information value for the investment decision.” Douglas Hubbard | http://www.cio.com/article/119059/The_IT_Measurement_InversionFriday, December 7, 12
  27. 27. how do we improve? leaders are teachers optimize your process for experimentation build organizations that learn fast measure value deliveredFriday, December 7, 12
  28. 28. Jack Andraka “Make sure to be passionate about whatever it is you get into, because otherwise you won’t put the right amount of work into it.”http://www.forbes.com/sites/bruceupbin/2012/06/18/wait-did-this-15-year-old-from-maryland-just-change-cancer-treatment/Friday, December 7, 12
  29. 29. questions @jezhumble | jez@thoughtworks.com http://continuousdelivery.com/ ThoughtWorks is hiring! http://jobs.thoughtworks.com/ Australia | Brazil | Canada | China Germany | India | Singapore | South Africa Uganda | UK | USA © 2012 ThoughtWorks, Inc. Sign up for my newsletter http://thoughtworks-studios.com/Friday, December 7, 12