More Business Value Now - Triad

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In January I talked with the Agile Triad group. About getting more Business Value now. In the context of Scrum.

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More Business Value Now - Triad

  1. 1. MORE BUSINESS VALUE NOW “Transforming the World of Work” © Joseph Little 2013 1
  2. 2. Joe Little, CST & MBA• Agile Coach & Trainer (CST)• 20+ years in senior level consulting to well-known firms in New York, London and Charlotte, and elsewhere.• Focus on delivery of Business Value; interest in Lean• CST (CSP, CSM); MBA• Was Senior Manager in Big 6 consulting• Head of Kitty Hawk Consulting, Inc. since 1991• Head of LeanAgileTraining.com• Started trying to do [Agile] before reading The Mythical Man-Month – http://agileconsortium.blogspot.com – jhlittle@kittyhawkconsulting.com © Joe Little 2013 2
  3. 3. Basics © Joseph Little 2013 3
  4. 4. Key Issue Having better lives (the good life) Smaller version: Getting more from Scrum. © Joe Little 2013 4
  5. 5. Would it be good to have moreBusiness Value? © Joe Little 2013 5
  6. 6. What’s in it for you? (Scrum) More business value for the firm More for the customers More, cheaper, faster, better Faster delivery (TTM) Better way to work (for the workers) More fun It just makes sense © Joe Little 2013 6
  7. 7. If you are a Team member... If you deliver more real business value, your life has a higher purpose.... You have done something for another person(s). This is a wonderful thing. © Joe Little 2013 7
  8. 8. What is the problem? We are not delivering enough Business Value. Large success does happen often...why not much more often?? And a larger success more often... © Joe Little 2013 8
  9. 9. Put another way We need more... Innovation Inventiveness Creativity Beauty WOW factor Sex appeal Neat, cool, wonderful solutions to hard technical and business problems © Joe Little 2013 9
  10. 10. Per Tom DeMarco Project A will eventually cost about $1 million and will produce value of about $1.1 million Project B will eventually cost about $1 million and will produce value of about $50 million. What do we learn from this? See: “Software Engineering: An idea whose time has come and gone”, by Tom DeMarco © Joe Little 2013 10
  11. 11. What we do now in Scrum © Joseph Little 2013 11
  12. 12. What does Scrum do ‘out of the box’to get more business value?1. Business and Technology collaborate2. We have a Product Owner for each Team3. We have a ‘prioritized’ Product Backlog4. Ordered mainly by Business Value5. Each sprint we have working product (per the DOD)6. Each demo, we show the working product to ‘business stakeholders’ and get their feedback As in: ‘Did we build the best possible stuff for you this Sprint?’7. We release earlier © Joe Little 2013 12
  13. 13. But we can do more... © Joe Little 2013 13
  14. 14. What else can we do? In small teams, with stickies. And large pens. One items per sticky... What are some concrete things we could start doing tomorrow that could raise BV? You have 2 minutes. The Team with the most stickies wins.... © Joe Little 2013 14
  15. 15. 3 More Ideas © Joseph Little 2013 15
  16. 16. The 3 ideas Business Value Engineering Priority Poker The Pareto Idea © Joe Little 2013 16
  17. 17. Business Value Engineering A framework for continuously improving how you deliver more and more business value. Steals from Value Stream Mapping (Lean) Steals from Deming (Plan-Do-Check-Act) Uses ideas similar to the scientific method © Joe Little 2013 17
  18. 18. Priority Poker Similar to Planning Poker, which you know and love Puts BV Points on each fricken user story Done as a Team ‘It’s the conversations, stupid.’ © Joe Little 2013 18
  19. 19. The Pareto Idea We know this as the 80-20 rule...although not well enough. Wilfredo Pareto: The ‘vital few’ Sifting to separate... The gold, platinum, diamonds The silver and copper The dirt (even the dirt gives a decent return) © Joe Little 2013 19
  20. 20. Ummm... These 3 ideas could be done separately.... OR... They could be done together... © Joe Little 2013 20
  21. 21. Business Value Engineering © Joseph Little 2013 21
  22. 22. Business Value Engineering A framework for continuously improving how you deliver more and more business value. Steals from Value Stream Mapping (Lean) Steals from Deming (Plan-Do-Check-Act) Uses ideas similar to the scientific method © Joe Little 2013 22
  23. 23. The two essential questions How do we get the BV ideas and the requirements into the Team? How do we deliver the ‘product’ to the customer? © Joe Little 2013 23
  24. 24. The BV process is visible and wearticulate the underlying Do you understand yours, end-to-end? Customers The Business External Customer facing people & The Team Internal Internal groups (Firm oriented) © Joe Little 2013 24
  25. 25. Hallmarks of good BV Engineering1. The process is visible and articulated & always improving2. Failures in BV communication are identified and corrected frequently, quickly3. There are many theories, and a concerted attempt to prove out each theory4. There is appropriate dynamism and change5. Business & Technology are partners6. Success is forecast (modeled) and also measured after the fact7. Human judgment is involved (the numbers are not a dictator) © Joe Little 2013 25
  26. 26. Some good Theories (examples) - 1 The customer will change her mind 20% in 6 months. The customer does not really know what he wants. The customer cannot explain clearly what she wants. The customer only knows it when he sees it. The customer does not want software, just a solution to her problem. The Sales guys can explain some customer wants. © Joseph Little 2013 26
  27. 27. Good Theories (examples) - 2 We can learn something about BV using better metrics (maybe even money). While we need some documentation, it is also very important to give the Team the Tacit knowledge. The telephone game effect should be minimized. Let’s have real customers come to some demos. © Joseph Little 2013 27
  28. 28. Good Theories (examples) - 3 Customers disagree. And customers and our shareholders disagree on what is highest BV. We are always separating the diamonds from the dirt. It helps for the Team to understand BV, even the monetary return from the new product. We expect to revise the NPV estimates over time, for many reasons. © Joseph Little 2013 28
  29. 29. Good Theories (examples) - 4 It is helpful to identify different ‘roles’ for the product. We should optimize delivery ‘end-to-end’. “End-to-end” starts when the customer has an idea, and ends when the customer is successfully using the product (achieving their business value). © Joseph Little 2013 29
  30. 30. Good Theories (examples) - 5 There are important benefit-cost trade-offs in our work. Only by having Business- Technology as partners, can we make the better trade-offs. Knowledge about these trade-offs evolves over time. Understanding knowledge creation and knowledge decay are key to achieving ever higher business value. © Joseph Little 2013 30
  31. 31. Good Theories (examples) - 6 Every customer has a high demand for simplicity and speed of delivery. And high quality. ...even if unstated. Some projects will be cancelled if the benefit- cost ratio declines enough. Every representative of ‘the customers’ is problematic to some degree. We are always looking to reduce the bias. Let’s let the coder talk to some of the end users. Testers must understand business value more. © Joseph Little 2013 31
  32. 32. Good Theories (examples) - 7 The business value of the (next) release can often change significantly in a month or two. (While we are building it.) Often customers need our help in prioritizing the “requirements” that the diverse people from that firm have given us The best possible feedback comes after it goes into production. (release sooner) By using working software, we will learn faster how much we are misunderstanding what they really want. © Joseph Little 2013 32
  33. 33. Good Theories (examples) - 8 Watching a person working if often the best way to identify the real needs. Use cases can be helpful in articulating the requirements Showing some real users working software frequently can be very useful for learning about requirements The customer often does not understand his problem, and is more often far from articulating well the ‘better’ solution for it. (eg, does not understand what is possible) © Joseph Little 2013 33
  34. 34. Good Theories (examples) - 9 Exogenous variables (war, weather, economic) add more reasons to deliver something smaller faster. No one person at the customer firm ‘knows’ what the customer (firm) wants. We need to re-train some customers to trust us enough to want more frequent releases. And give them the necessary support (eg, for testing). We must have higher quality so that customer testing costs and ‘pain’ reaches an acceptably lower level. © Joseph Little 2013 34
  35. 35. Some Outputs A BV ‘process’ map (~30 objects/stickies) A list of underlying theories (~20) An ‘operational’ definition of BV for the next release A BV Model A specific improvement to make (later: approved & work done) Something changes A way(s) of measuring (higher) BV (eg, after the release is in production) A way of evaluating success (later: success evaluated) © Joseph Little 2013 35
  36. 36. Priority Poker © Joseph Little 2013 36
  37. 37. What is it? Priority Poker is very similar to Planning Poker, except it is about Business Value. Other differences: The reference story is the highest BV one. (Not the lowest effort one.) We use the “5” best “experts” on Business Value. © Joseph Little 2013 37
  38. 38. 3 roles • Product owner • Scrum master • TeamPlanning poker cards 3 artifacts • Product backlog • Sprint backlog • Sprint burndown 4 activities • Sprint planning • Daily scrum • Sprint review • Retrospectivehttp://planningpoker.crisp.seSource: Henrik Kniberg CSM v9.3 © Jeff Sutherland 1993-2008; © Joe Little 2013 38
  39. 39. What happens? They select the reference story. BVP=100 They choose a story (random) to evaluate They discuss They vote. Imagine: 2, 20, 20, 20, 40 The two extremes talk The vote again: 13, 20, 20, 20, 40. The average is 23. (Meaning: On average, they feel it is about 23% of the BV of the reference story) They go to the next story © Joseph Little 2013 39
  40. 40. What is the pupose? The number of each story card? OR.... That the 5 ‘experts’ discussed some important issues, and ‘everyone’ now understands BV much better? © Joseph Little 2013 40
  41. 41. The purpose is... ...that now everyone has shared their (key) tacit knowledge about business value. ...that now everyone has learned. ...that now mostly they see the same elephant (of BV). © Joseph Little 2013 41
  42. 42. Now... R = BVP / SP We can do more work on the Pareto Idea... (up soon) © Joseph Little 2013 42
  43. 43. Very simple... ...very powerful. © Joseph Little 2013 43
  44. 44. A word of advice... If the ‘wrong’ person explains it, they won’t do it If the ‘right’ person explains it, they do it easily and see the value Hard to explain why...but that seems to be the truth © Joseph Little 2013 44
  45. 45. The Pareto Idea © Joseph Little 2013 45
  46. 46. The Pareto idea 80-20 The vital few Less is more... Example: The iPod, not the Zune © Joseph Little 2013 46
  47. 47. Pareto’s Rule (you must prioritize!) Pareto Curve100 80 60 40 20 0 1st Quint. 2nd Quint. 3rd Quint. 4th Qunit. 5th Quint. © Joe Little 2013 47
  48. 48. Pareto said... You can re-apply the Pareto idea at every level of the population THUS: Every time you break down an Epic, part of it is high value, part medium, part low © Joe Little 2013 48
  49. 49. Advice Smaller stories!!!!!! OK?... Smaller stories!!! © Joe Little 2013 49
  50. 50. More importantly... You have been brainwashed, for years, into the 100%-100% rule And everyone around you has been brainwashed AND... we are still learning how to sift & see: gold, platinum, diamonds silver, copper dirt © Joe Little 2013 50
  51. 51. Advice: Learn to say ‘NO’ ...in a nice way See: The Power of a Positive No, by William Ury © Joe Little 2013 51
  52. 52. Advice: First do the 85%-50% rule 85% of $3 million is $2,550,000 50% of 12 months is 6 months.... THUS: a 70% improvement with just the 85-50 rule © Joe Little 2013 52
  53. 53. Advice: Work on it every day Work on it HARD every day Every day there is some additional work (feature) you can identify NOT to do in the Release. Identifying that is hard. Saying NO is hard. © Joe Little 2013 53
  54. 54. Killing Babies or Sizzling Steak © Joseph Little 2013 54
  55. 55. You have finished Release Planning... P.B. By Apr 30th! © Joe Little 2013 55
  56. 56. You have finished Release Planning... P.B. NO !!! By Apr 30th! © Joe Little 2013 56
  57. 57. “Killing Babies” I don’t recommend it © Joe Little 2013 57
  58. 58. Show a Pareto Chart 80 60R Factor 40 20 1 2 3 0 4 Bar Chart - Stories - Width is SPs 5 © Joe Little 2013 58
  59. 59. You have finished Release Planning... P.B. By Apr 30th! © Joe Little 2013 59
  60. 60. Sizzling Steak! Yes! We have to show the sizzling steak! © Joe Little 2013 60
  61. 61. Other basic ideas © Joseph Little 2013 61
  62. 62. Some simple things - 1 Benefit-cost analysis Let the coder talk to the real user Agile Specs Ask the Doers to think about business value frequently Create a BV Model Modify the BV Model once per month Learn to cancel projects when better projects come along © Joe Little 2013 62
  63. 63. Some simple things - 2 Identify & fix more technical debt Make the PO better Get more PO time for the team Teach the PO about the product Give the PO time to talk to end users and customers Let the PO watch a master PO Improve the quality of the Agile Specs © Joe Little 2013 63
  64. 64. Some more simple things - 3 Get more creative Make the product more elegant or beautiful Get better business stakeholders More feedback from the business stakeholders More time from the business stakeholders A better relationship between the business stakeholders and the PO Bring real end users to the Demo © Joe Little 2013 64
  65. 65. More simple things - 4 Map the stories (in several possible ways) The Doers should watch what the end users do each day Re-calculate the BV Model more frequently Integrate more between Team planning and firm planning Study competitive products Remove small features from the release (Pareto) Faster feedback within the Sprint (Doers - PO) © Joe Little 2013 65
  66. 66. More simple things - 5 Have more fun!?!*** Ask: “What will delight the customer?” Measure BV delivered (measure after a release) Focus on TTM (time to market). Measure it. Identify the BV drivers specific to your effort Clarify the acceptance criteria (functional tests) more Automate the functional tests (more) © Joe Little 2013 66
  67. 67. Summary © Joseph Little 2013 67
  68. 68. Do these!!! Business value engineering Priority Poker Execute on the Pareto Idea © Joe Little 2013 68
  69. 69. If you do, you’ll have more fun! Yes, even hard work can be fun, if you do it the right way.... © Joe Little 2013 69
  70. 70. Thank you. Please contact me here: Joseph Little jhlittle@kittyhawkconsulting.com LeanAgileTraining.com LeanAgileTraining.com/blog Twitter: jhlittle Office: 704-376-8881 Cell: 917-887-1669 © Joe Little 2013 70
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