The Agile Business Gap - By Nick Coster

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What is the difference between an Agile business and a business that uses Agile development? This presentation was delivered by Nick Coster at the Product Management Festival in Zurich

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The Agile Business Gap - By Nick Coster

  1. The Agile Business Gap www.brainmates.com.au
  2. Nick Coster Co-Founder and Head of Training Services
  3. We are a Product Management Consulting and Training business. We work with product teams across varied industries, companies and organisational sizes.
  4. Our training courses include: Essentials of Product Management Agile for Product Managers Business Case Writing See more at http://www.brainmates.com.au/training-summary
  5. The Agile Business Gap Business Development
  6. The Vision of an Agile Business is…
  7. The Vision of an Agile Business is… Earlier realisation of business benefits by prioritising for business and market value.
  8. The Vision of an Agile Business is… Delivery of smaller and more regular product features to the market.
  9. The Vision of an Agile Business is… Increased business collaboration and transparency throughout the development.
  10. The Vision of an Agile Business is… Reduction of risk through faster learning from the market.
  11. But…
  12. … we have observed a repeating problem in many existing business where Agile is implemented.
  13. Agile starts well…..
  14. ….. but then GAPS start to appear between the business and the development team.
  15. These are Agile Business Gaps
  16. What causes the Agile Business Gap?
  17. Page Text Business Definition
  18. Development Definition AGILE
  19. 20 Traditional Product Development Idea Business Case Design Build Market Launch
  20. 21 Traditional Product Development Idea Business Case Design Build Market Launch Likelihood of Market Fit diminishes over time High Low Time MarketFit
  21. 22 Agile methods are introduced to deliver better products to market faster.
  22. User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog User Story User Story User Story Sprint Backlog Sprint Tasks Sprint 2-4 weeks Daily Work Sprint Release Marketable Product Agile Product Development
  23. But when a development team “Goes Agile” other things break. Why?
  24. 25 Idea Business Case Design Build Market Launch Agile Product Development The Product Build is only one stage of many required for successful Product Delivery
  25. 26 Idea Business Case Design Build Market Launch Agile Product Development The impacts of introducing Agile will be felt throughout the process…
  26. The Vision of an Agile Business is… ?!
  27. Gap 1: Product Management Resource Gap
  28. 29 Idea Business Case Design Build Market Launch Agile Product Development
  29. In an Agile team there is a Product Owner
  30. But where do “Product Owners” come from?
  31. By default the Agile team turns to the Product Manager…
  32. IMPACT: When a Product Manager also acts as the Agile Product Owner, both the product and the Agile project suffers.
  33. Tip 1: a) Resource a dedicated Agile Product Owner role. b) The Product Manager and the Agile Product Owner work hand in hand to manage the product delivery.
  34. Make it clear! Business “Product Owner” ≠ Agile “Product Owner”
  35. Business “Product Owner”: Responsible for Product Profit and Loss $$
  36. Agile Product Owner: Responsible for prioritisation of user stories to increase customer and business value.
  37. Outcome: Appropriate Product Owner resourcing allows for better communication and delivery through job specialisation.
  38. Gap 2: Agile Product Management Gap
  39. 40 Idea Business Case Design Build Market Launch Agile Product Development
  40. User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog User Story User Story User Story Sprint Backlog Sprint Tasks Sprint 2-4 weeks Daily Work Sprint Release Marketable Product Key interface is the Product Backlog.
  41. User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog But where do User Stories come from? The Product Backlog is a prioritised list of User Stories.
  42. Product Manager converts high level Business Case objectives into more granular requirements.
  43. Signoffs and Approvals These documents need to be “complete” before they are signed off. 
  44. IMPACT: With no changes to the signoff and approval stages the benefits of an Agile team are wasted.
  45. Tip 2 Develop requirements in “Discovery Sprints” of the same length as Agile team Sprints. Signoffs at the end of each Sprint.
  46. Prioritise Business Case outcomes by market segment value. Segment A Segment B Segment C Segment D Highest Business Value Lowest Business Value
  47. For the highest value segment, storyboard scenarios (or “epics”) Segment A Scenario A1 Highest Business Value Lowest Business Value Scenario A1 Scenario A2 Scenario A4 Scenario A3 Scenario A2 Scenario A4 Scenario A3 Highest Business Value
  48. Finally, break the scenario into smaller tasks or User Stories Segment A Scenario A1 User Story A1-X User Story A1-Y User Story A1-Z Highest Business Value Lowest Business Value
  49. Product Backlog prioritised by business value and testable outcomes. Segment A Scenario A1 User Story A1-X User Story A1-Y User Story A1-Z Segment B Scenario B2 User Story B2-X User Story B2-Y User Story B2-Z Segment A Scenario 2 User Story A2-X User Story A2-Y User Story A2-Z Highest Business Value Lowest Business Value
  50. Outcome: Alignment of sprint cycles delivers regular small parts of Business value with the traditional process.
  51. Gap 3: Business Case Gap
  52. 53 Idea Business Case Design Build Market Launch Agile Product Development
  53. Business Case funding is for projects, NOT continuous delivery of a product in the market. Continuous Product DeliveryProjects
  54. Established Organisations Project Focused Funding. Need to know project costs before project starts. Want to spend as Capital Expenditure for accounting.
  55. IMPACT: It is more difficult to get projects funded when the costs are so “Flexible”.
  56. Tip 3: a) Estimate the full cost of a single sprint. b) Estimate the # Sprints required for a market release. This limits both costs and time of the project and helps clarify scope.
  57. Outcome: Simplifies business case costing. Smaller projects, more often embraces faster learning from the market.
  58. Is your Business Agile?
  59. How will you close the Agile Business Gap? Business Development
  60. Connect with Brainmates 61 Brainmates Group @Brainmates #prodmgmt Facebook.com/Brainmates www.brainmates.com.au info@brainmates.com.au + 61 2 9232 8147

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