Agile Product Management

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Agile Product Management

  1. 1. Agile Product ManagementMike CohnSeptember 29, 20051
  2. 2. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareMike Cohn—backgroundn Programming for 20 yearsn Author of¨ User Stories Applied¨ Agile Estimating and Planning¨ Java, C++, database programmingbooksn Founding member and director ofthe Agile Alliance and the ScrumAlliancen Founder of Mountain GoatSoftware¨ Process and project managementconsulting and training2
  3. 3. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareThe planning onionAgile ProductManagement ismostly concernedwith the space fromProduct to Iteration3
  4. 4. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareToday’s agendaq Prioritizingq Project charteringq Working with the developersq Establish a financial model4
  5. 5. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwarePrioritizingn Why prioritize?¨ Percent of features used in Word and PowerPoint:Users workingalone§ Used 12%–16% offeatures§ Used 26%–29% offeatures10-persongroupsSource: International Software EngineeringResearch Network Workshop (2000).5
  6. 6. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareFactors in prioritizationn Business valuen Risk reductionn Change in relative costn Learning / uncertaintyBusiness valuetrumps otherfactors……but there are otherfactors to consider6
  7. 7. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareLearning / uncertaintyn Product knowledge¨ What should we develop?n Project knowledge¨ How should we develop it?The purpose of a projectis to:Deliver new capabilitiesGenerate new knowledge7
  8. 8. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareOne view of reducing uncertaintyLowHighLowHighMeans Uncertainty(How)EndUncertainty(What)A waterfall approach8
  9. 9. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareAn agile approach to uncertaintyLowHighLowHighMeans Uncertainty(How)EndUncertainty(What)An agile approach9
  10. 10. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareSlidersn Think of¨risk reduction¨knowledge generation¨change in relative costas sliders that move business priority forwardor back10
  11. 11. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareExample: User interface designWill this cost more orless letter?Do sooner Do laterPrioritization basedsolely on businessvalueWill designing the UIreduce risk?Will doing thisgenerate usefulknowledge?11
  12. 12. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareExample: a security frameworkDo sooner Do laterWill this cost more orless letter?Prioritization basedsolely on businessvalueWill doing thisgenerate usefulknowledge?Will doing this reducerisk?12
  13. 13. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwarePrioritizing with Kano analysisn Three types of featuresThreshold /BaselineMust be present in orderfor users to be satisfiedLinear The more of it, the betterExciters /DelightersFeatures a user doesn’tknow she wants, untilshe sees it13
  14. 14. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareSurveying usersn To assess whether a feature is baseline,linear, or exciting we can:¨Sometimes guess¨Or survey a small set of users (20-30)n We ask two questions¨A functional questionn How do you feel if a feature is present?¨And a dysfunctional questionn How do you feel if that feature is absent?14
  15. 15. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareFunctional and dysfunctional formsI expect it to be that way.I like it that way.I am neutral.I dislike it that way.I can live with it that way.If your hotel roomincludes a freebottle of water, howdo you feel?I expect it to be that way.I like it that way.I am neutral.I dislike it that way.I can live with it that way.If your hotel roomdoes not include afree bottle of water,how do you feel?Functionalform ofquestionDysfunctionalform ofquestionXX15
  16. 16. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareCategorizing from a question pairEIIIREIIIREIIIRQRRRRLMMMQLiveWithDislikeLikeExpectNeutralLive WithDislikeLikeExpectNeutralFunctionalQuestionDysfunctionalQuestionMandatoryMLinearLExciterEQuestionableQReverseRIndifferentI16
  17. 17. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareAggregating resultsApply formatting themesAutomate report executionExport reports to PowerPointThemeExciter6842 Linear214318Mandatory623927Indifferent289Reverse522Questionable40217
  18. 18. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareWhat to includen All of the baseline features¨By definition, these must be presentn Some amount of linear featuresn But leaving room for at least some amountof exciters18
  19. 19. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareToday’s agendaþ Prioritizingq Project charteringq Working with the developersq Establish a financial model19
  20. 20. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareEstablishing a shared visionn Teams do best when they have a “clear,elevating goal” and “unified commitment”†n It’s the product manager’s job to focus the teamand find this clear, elevating goaln Tools for establishing a shared vision:Source: †Teamwork by Carl Larson and Frank LaFastoElevator statement‡Press releaseVision box‡Magazine review20
  21. 21. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareElevator statementn A short statement of the product’s positioningn Explains the product to someone in 2 minutesn Follows this syntaxFor (customer)Who (statement of need or opportunity)The (product name) is a (product category)That (key benefit, compelling reason to buy).Unlike (primary competitor)Our product (statement of primary differentiation).Sources: Crossing the Chasm by Geoffrey Moore21
  22. 22. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareExample elevator statementn For dentists and their assistantswho need to efficiently schedule appointmentsDental Clinic 2.0 is desktop and web-basedappointment scheduling softwarethat supports office and remote access.n Unlike competitive products,Dental Clinic 2.0 is easy to use andaggressively priced.22
  23. 23. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareProduct vision boxn Design a box for the software¨Even if the software won’t ship ina boxn Write 3-4 key bullet points to sellthe software¨Easier to come up with 15¨The challenge is distilling the listto 3-4 key pointsSources: Agile Project Management by Jim Highsmith.23
  24. 24. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareSample product vision boxn Easy integration with mostinsurance systemsn Support for multiple chairswith appointment setting bychairn Multi-language supportn One click database backup24
  25. 25. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwarePress release to comen Collaboratively write the press releaseyou’d like to see released at the end¨What are the key points you’d make about theproduct¨What quotes would you have and who wouldthey be from?n CEO? Team members? Customers?25
  26. 26. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwarePress release templateThe _______company announced today the successful completion of the_________project. This project provides __________________________________________________. The customer for this project,________________, indicated in a recent interview that they selected___________ as their supplier due to the following key benefits:1. ______________________________________2. ______________________________________3. ______________________________________________________ also identified several features that they felt wereparticularly useful. These include:1. ______________________________________2. ______________________________________3. __________________________________________________ noted that the single most important benefit of theirsuccessful project was “_______________________________________________________________________.”26
  27. 27. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareMagazine reviewn Write the review you’d like to see in PCMagazine¨Use whatever magazine you’d like or evenmake one upn What key features would be singled out?n What will be said about your productcompared to the prior version?Competitors?27
  28. 28. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareToday’s agendaþ Prioritizingþ Project charteringq Working with the developersq Establish a financial model28
  29. 29. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareCommunicate the driving factorn Be clear about what’s driving the project¨Usually date or features¨But NOT bothn Feature-driven projects¨Project will ship when the desired featureshave been developedn Date-driven projects¨Project will ship on the date, regardless ofwhether all desired features are included29
  30. 30. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareExample date-driven projects§ Tax software§ Software to comply with periodic changesin government regulations§ Software for fantasy football§ The Olympics30
  31. 31. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareValue-driven projectsn Making appropriatetradeoff decisionsbetween date andfeaturesn Committing tomaximizing valuen Deferring tradeoffdecisionsn Acknowledginguncertainty about theproduct and theproject1.6x1.25x1.15x1.10xx0.9x0.85x0.8x0.6xProjectScheduleInitialProductDefinitionApprovedProductDefinitionRequirementsSpecificationProductDesignSpecifica tionDeta iledDesignSpecificationAcceptedSoftware31
  32. 32. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareTradeoff matrixScopeScheduleResourcesLow DefectsFixed Firm Flexible Target4300+story points4 4-5 months4 $400k41 high bugper monthTradeoff Matrix32
  33. 33. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareSet high expectationsn You do not control HOW the developmentteam does its workn But you do get to say WHAT they produceand WHEN it’s produced§ I don’t tell a mechanic how to fix my car, but Ido ask for an estimate, say what type of partsto use, approve work, and may call for aprogress report if it’s a big job33
  34. 34. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareSome expectations you should have“At least once a month, Iwant my hands on thekeyboard to try out newfeatures.”§ Ensures a focus on user-visible features, not justframeworks andarchitecture.§ Avoids a demo of a snake.“I want to be able to seeprogress at least once amonth. And I’m only goingto measure progressthrough working, testedfeatures.”§ Encourages iterations.§ Stresses importance ofconsistent focus on quality.§ Provides insight intoprogress.34
  35. 35. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareSome more expectations“My computer runsautomated tests when Iturn it on. I expect thisapplication to have similarautomated tests.”§ Ensures team willautomate tests.Set realistic deadlines.§ Too aggressive or too laxare not motivating.§ Teams work fastest withrealistic deadlines.§ Be careful of making it allabout the date.35
  36. 36. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareToday’s agendaþ Prioritizingþ Project charteringþ Working with the developersq Establish a financial model36
  37. 37. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareUnderstand product financialsBusiness modelCurrentcustomersFuturecustomersMarketacceptanceCompetitionPeriod 1 Period 2 Period 3Communicate this model to the whole team!37
  38. 38. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareTypical sources of returnNew revenueIncrementalrevenueRetainedrevenueOperationalefficiency38
  39. 39. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareAn exampleQ Dev.CostNewRevenueIncr.RevenueRetainedRevenueOper.EfficienciesNet CashFlow1 –90,000 0 0 $2,000 0 –88,0002 –30,000 $2,500 $1,600 $2,000 0 –23,9003 0 $3,750 $5,000 $2,000 $7,500 18,2504 0 $3,750 $7,500 $2,000 $7,500 20,7505 0 $7,500 $10,000 $4,000 $7,500 29,0006 0 $7,500 $10,000 $4,000 $7,500 29,0007 0 $7,500 $10,000 $4,000 $15,000 36,5008 0 $7,500 $10,000 $4,000 $15,000 36,50039
  40. 40. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareUseful financial measuresn Net present value¨ The present value of the money the project willearnn Return on investment / internal rate of return¨ The rate of return earned by the project per aperiod of timen Discounted payback period¨ The amount of time until a project pays back itsinitial investment40
  41. 41. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareProject (theme) comparison matrix41
  42. 42. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareThemes and stories on theplanning onionn Compare financials and desirability (Kanoanalysis) Compare projects toselect a portfolioCompare themes to layout a multi-releaseproduct planCompare themes andstories to create a releaseplan42
  43. 43. Slides copyright 2000-2004, Michael W. CohnAll slides copyright 2003-2005, Mountain Goat SoftwareMike Cohn contact information§ mike@mountaingoatsoftware.com§ (303) 810–2190 (mobile)§ (720) 890–6110 (office)§ www.mountaingoatsoftware.com43

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