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Matt	
  Barcomb
@MattBarcomb	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  #AAB16	
  	
  	
  	
  	
  	
  matt.barcomb@LeanDog.com
Value-focused
prioritization &
decision making
@LeanDog @MattBarcomb #AAB16
What we’ll cover today
A better model for R&D
Business value & stories
Benefit Mapping & Costing
@LeanDog @MattBarcomb #AAB16
“‘Essentially, all models are
wrong, but some are useful.’
George Box.”
- Amber Rose
@LeanDog @MattBarcomb #AAB16
Planning for
mass construction
How much will it cost?
When will it be done?
@LeanDog @MattBarcomb #AAB16
Planning for
research & development
Should we start?
Should we keep going?
@LeanDog @MattBarcomb #AAB16
Spectrum of knowable stuff
Routine
manufacturing
Complex
manufacturing
Physical
product dev.
Scientific
research
Mass
construction
Software
product dev.
Enterprise
ERP impl.
Knowable upfront details
Knowable responses to risks
Knowable links between
cause & effect
@LeanDog @MattBarcomb #AAB16
Shift the focus
Primarily focus on
understanding value
Evaluate risk and
opportunity costs
Learn just enough about
costs to choose to start
@LeanDog @MattBarcomb #AAB16
Cost of Delay
How much are you loosing
because it’s not already done?
Can over-focused on money
Can lead to mythical dollars
Product:
Galaxy
Revenue
Customer
Satisfaction
Product
Adoption
Product
Awareness
Competitiveness
Dec. Mktg Costs
Sales Reach
Brand
Awareness1
Expires in March
2
3
4
Benefit Mapping
Struggling with “benefit”?
Make “Highlander” comparisons
Capture the measurable reasons
Make as quantifiable as possible
Sales
Reach 30%
Increase
Revenue 10%
Decrease
Mktg. Costs 15%
Product
Adoption 45%
1= <1%
5= >15%
1= <$5k
5= >$50k
1= no change
5= very easy
1= <10% of reg.
5= >40% of reg.
Options Scores
New catalog
Grades Portal
4
3
2
4
1
2
3
1
285
295
Product: Galaxy
Revenue
Customer
Satisfaction
Product
Adoption
Product
Awareness
Competitiveness
Dec. Mktg Costs
Sales Reach
Brand
Awareness
Weighted
Scoring
Rubric
Activity: Create a B-Map
You are starting a medical
technology company.
Medical
Technology
Activity: Create a B-Map
Mind-map desired benefits (value)
Medical
Technology
Activity: Create a B-Map
Rank the top 3
Medical
Technology
Activity: Create a B-Map
Assign weights
Medical
Technology
? % ? % ? %
Activity: Create a B-Map
Come up with 2 research options
Activity: Create a B-Map
Score 2 options (use a 1-5 scale)
Medical
Technology
? % ? % ? %
Option 1
Option 2
Activity: Create a B-Map
What did you discuss?
How did you decide?
Coherence vs. Artifacts
Cost
“Learn just enough about
costs to choose to start.”
Rough cost snap
Use past data
Informed conversation
@LeanDog @MattBarcomb #AAB16
Business Value and User Stories
Stories should be small
Biz value is at “MVP” level
Priority shifts to risk/learning
@MattBarcomb	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  #AAB16	
  	
  	
  	
  	
  	
  matt.barcomb@LeanDog.com
If you’d like the slides…
…or to discuss something
Please come let me know!
or email matt.barcomb@leandog.com
Questions?

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