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Houston, we have a priority!
Natalie Warnert
Scrum Gathering Orlando #sgfla
April 18, 2016
Agenda
• Natalie’s background
• The fight for priority – org levels
• Traditional value measurement
• Activity 1 & debrief...
Natalie Warnert
• Agile Coach
• MA, SPC, CSP, CSM, PSM
Web: www.nataliewarnert.com
Twitter: @nataliewarnert
Email: info@na...
Why is value measurement
important to me?
The fight for priority
• This is more valuable than that!
• Priority can look very different at different
levels of the or...
The fight for priority - Portfolio
• Long term roadmaps
• Strategy
• Performance objectives
• Funding allocation
The fight for priority - Portfolio
• Long term roadmaps
• Strategy
• Performance objectives
• Funding allocation
• Strengt...
The fight for priority - Program
• Roadmap alignment
• Features
– Top down
– Laterally
– Bottom up
• Dependency management...
The fight for priority - Program
• Roadmap alignment
• Features
– Top down
– Laterally
– Bottom up
• Dependency management...
The fight for priority - Team
• Team roadmap
– Enhancements
– New functionality
– Tech debt
– Defects
– Dependencies
• Con...
The fight for priority - Team
• Team roadmap
– Enhancements
– New functionality
– Tech debt
– Defects
– Dependencies
• Con...
Brainstorming Activity: 5 min
• What issues have you noticed between
priority valuation at different levels of the
organiz...
Traditional Value Measurement
val·ue
/ˈvalyo͞o/
Verb
1.estimate the monetary worth of (something).
“the feature was valued...
Traditional Value Measurement –
Return on Investment
• ROI
– Net profit/cost of investment = ROI
– OR… how much can we pro...
Traditional Value Measurement –Cost of
Delay
• Cost of Delay – what is the cost of having
NOT done this? [value + urgency ...
Traditional Value Measurement –Cost of
Delay
• Cost of Delay – what is the cost of having
NOT done this? [value + urgency ...
Traditional Value Measurement –Cost of
Delay
• Cost of Delay – what is the cost of having NOT
done this? [value + urgency ...
Traditional Value Measurement –Cost of
Delay
• Cost of Delay – what is the cost of having
NOT done this? [value + urgency ...
Traditional Value Measurement –Cost of
Delay
• Cost of Delay – what is the cost of having
NOT done this?
• Weighted shorte...
Traditional Value Measurement –Cost of
Delay
• Cost of Delay – what is the cost of having
NOT done this?
• Weighted shorte...
Activity – 10 minutes
• Prioritize the work items into a program
roadmap based on monetary measures only
• Incorporate Cos...
Activity Debrief
• What was difficult about the activity?
• What were the first few items in your
prioritization order? La...
Traditional Value Management
• WSJF is important, but not as important as
how we calculate it
Traditional Value Management
• WSJF is important, but not as important as
how we calculate it
• Cost of Delay [value + urg...
Traditional Value Management
• WSJF is important, but not as important as
how we calculate it
• Cost of Delay [value + urg...
Traditional Value Management
• WSJF is important, but not as important as
how we calculate it
• Cost of Delay [value + urg...
Traditional Value Management
• WSJF is important, but not as important as how
we calculate it
• Cost of Delay [value + urg...
Customer Value Measurement
• But the customer does not care about value
as a measure
Customer Value Measurement
• But the customer does not care about value as
a measure
• Customer thinks of value as:
val·ue...
Customer Value Measurement
• As a…I want…so that…
Customer Value Measurement
• As a…I want…so that…
• As a customer/user/subscriber…
• I want [certain functionality]
• So t...
Customer Value Measurement
• As a…I want…so that…
• As a customer/user/subscriber…
• I want [certain functionality]
• So t...
Customer Value Measurement
• Customer cost of delay
– What I NEED to do (basic/threshold)
– What I WANT to do (performance...
Customer Value Measurement - Kano
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Customer Value Measurement - Kano
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Basic
Customer Value Measurement - Kano
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Basic
Performance
Customer Value Measurement - Kano
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Basic
Performance
Delight
Customer Value Measurement - Kano
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Time
Basic
Performance
D...
Activity 2 – 10 minutes
• Move feature cards ONLY vertically based on customer value factors
• Discuss which buckets each ...
Activity 2 – Debrief
• Which features are now the most important
customer value factored in?
• Which features are more lik...
What is missing?
Customer
Feeling
Money
Run a business
Build the right
thing
What is missing?
Customer
Feeling
Money
Run a business
Build the right
thing
ROI vs. Kano
(Money vs. Feeling)
Very
Satisfied
Very
Dissatisfied
Need
Unfulfilled Time
Basic
Performance
Delight
ROI (Val...
ROI vs. Kano
(Money vs. Feeling)
Very
Satisfied
Very
Dissatisfied
Need
Unfulfilled Time
Basic
Performance
Delight
ROI (Val...
ROI vs. Kano
(Money vs. Feeling)
Very
Satisfied
Very
Dissatisfied
Need
Unfulfilled Time
Basic
Performance
Delight
ROI (Val...
ROI vs. Kano
(Money vs. Feeling)
Very
Satisfied
Very
Dissatisfied
Need
Unfulfilled Time
Basic
Performance
Delight
ROI (Val...
Why is value measurement
important to me?
Wrap Up
• Value is both a verb and a noun (like Agile)
• Think about making money and the
customer – balance between impor...
Questions? Thank you!
www.nataliewarnert.com
Twitter: @nataliewarnert
Email: info@nataliewarnert.com
#sgfla
Please fill ou...
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Houston - We Have a Priority - Natalie Warnert Scrum Gathering Orlando 2016

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Presentation from Scrum Gathering Orlando (April 2016) about value mapping and prioritizing from a customer and business perspective using both Kano and ROI analysis using Agile and Scrum principles - Natalie Warnert

www.nataliewarnert.com

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Houston - We Have a Priority - Natalie Warnert Scrum Gathering Orlando 2016

  1. 1. Houston, we have a priority! Natalie Warnert Scrum Gathering Orlando #sgfla April 18, 2016
  2. 2. Agenda • Natalie’s background • The fight for priority – org levels • Traditional value measurement • Activity 1 & debrief • Customer value measurement • Activity 2 & debrief • Bringing it all together • Questions
  3. 3. Natalie Warnert • Agile Coach • MA, SPC, CSP, CSM, PSM Web: www.nataliewarnert.com Twitter: @nataliewarnert Email: info@nataliewarnert.com
  4. 4. Why is value measurement important to me?
  5. 5. The fight for priority • This is more valuable than that! • Priority can look very different at different levels of the organization
  6. 6. The fight for priority - Portfolio • Long term roadmaps • Strategy • Performance objectives • Funding allocation
  7. 7. The fight for priority - Portfolio • Long term roadmaps • Strategy • Performance objectives • Funding allocation • Strength: ROI • Deficiency: being laser focused
  8. 8. The fight for priority - Program • Roadmap alignment • Features – Top down – Laterally – Bottom up • Dependency management • Funding project/teams
  9. 9. The fight for priority - Program • Roadmap alignment • Features – Top down – Laterally – Bottom up • Dependency management • Funding projects/teams • Strength: value stream • Deficiency: trying to find the right balance
  10. 10. The fight for priority - Team • Team roadmap – Enhancements – New functionality – Tech debt – Defects – Dependencies • Constraints
  11. 11. The fight for priority - Team • Team roadmap – Enhancements – New functionality – Tech debt – Defects – Dependencies • Constraints • Strength: customer factors • Deficiency: the bigger picture
  12. 12. Brainstorming Activity: 5 min • What issues have you noticed between priority valuation at different levels of the organization? • Who usually ”wins” and “loses” these discussions?
  13. 13. Traditional Value Measurement val·ue /ˈvalyo͞o/ Verb 1.estimate the monetary worth of (something). “the feature was valued at $45,000” Synonyms: evaluate, assess, estimate, appraise, price www.google.com
  14. 14. Traditional Value Measurement – Return on Investment • ROI – Net profit/cost of investment = ROI – OR… how much can we profit from this investment (percentage)? – Tangible
  15. 15. Traditional Value Measurement –Cost of Delay • Cost of Delay – what is the cost of having NOT done this? [value + urgency + risk reduction & opportunity enablement]
  16. 16. Traditional Value Measurement –Cost of Delay • Cost of Delay – what is the cost of having NOT done this? [value + urgency + risk reduction & opportunity enablement] • If we have an equal cost of delay pick the shortest job first Feature Cost of Delay Duration A $2 2 B $2 1
  17. 17. Traditional Value Measurement –Cost of Delay • Cost of Delay – what is the cost of having NOT done this? [value + urgency + risk reduction & opportunity enablement] • If we have an equal cost of delay pick the shortest job first • If we have an equal duration pick highest CoD Feature Cost of Delay Duration A $2 2 C $1 2
  18. 18. Traditional Value Measurement –Cost of Delay • Cost of Delay – what is the cost of having NOT done this? [value + urgency + risk reduction/opportunity enablement] • What if it’s not one or the other? Feature Cost of Delay Duration A $2 2 B $2 1 C $1 2
  19. 19. Traditional Value Measurement –Cost of Delay • Cost of Delay – what is the cost of having NOT done this? • Weighted shortest job first (WSJF) • Implementation and decision to use CD3 = CoD/Duration Feature Cost of Delay Duration CD3 = CoD/Duration A $2 2 1 B $2 1 2 C $1 2 1/2
  20. 20. Traditional Value Measurement –Cost of Delay • Cost of Delay – what is the cost of having NOT done this? • Weighted shortest job first (WSJF) • Implementation and decision to use CD3 = CoD/Duration Feature Cost of Delay Duration CD3 = CoD/Duration A $2 2 1 B $2 1 2 C $1 2 1/2
  21. 21. Activity – 10 minutes • Prioritize the work items into a program roadmap based on monetary measures only • Incorporate Cost of Delay, Duration, Weighted Shortest Job First, and ROI • Left = lower value • Right = higher value Lower Value Higher Value
  22. 22. Activity Debrief • What was difficult about the activity? • What were the first few items in your prioritization order? Last few? • How realistic is it to get everything done? • Which scope would likely get cut? • What was missing from the conversation about priority and valuation? • Take a picture of your priority arrangement.
  23. 23. Traditional Value Management • WSJF is important, but not as important as how we calculate it
  24. 24. Traditional Value Management • WSJF is important, but not as important as how we calculate it • Cost of Delay [value + urgency + risk reduction/opportunity enablement]
  25. 25. Traditional Value Management • WSJF is important, but not as important as how we calculate it • Cost of Delay [value + urgency + risk reduction/opportunity enablement] • And duration…
  26. 26. Traditional Value Management • WSJF is important, but not as important as how we calculate it • Cost of Delay [value + urgency + risk reduction/opportunity enablement] • And duration… • But it’s an estimation at best
  27. 27. Traditional Value Management • WSJF is important, but not as important as how we calculate it • Cost of Delay [value + urgency + risk reduction/opportunity enablement] • And duration… • But it’s an estimation at best • And when we estimate in a box (especially with money), we are more often than not WRONG
  28. 28. Customer Value Measurement • But the customer does not care about value as a measure
  29. 29. Customer Value Measurement • But the customer does not care about value as a measure • Customer thinks of value as: val·ue /ˈvalyo͞o/ Noun 1. the regard that something is held to deserve; the importance, worth, or usefulness of something. “this product is of great value” Synonyms: worth, usefulness, advantage, benefit, gain, good, help, merit www.google.com
  30. 30. Customer Value Measurement • As a…I want…so that…
  31. 31. Customer Value Measurement • As a…I want…so that… • As a customer/user/subscriber… • I want [certain functionality] • So that I can do something that is valuable to me and gain satisfaction by doing it
  32. 32. Customer Value Measurement • As a…I want…so that… • As a customer/user/subscriber… • I want [certain functionality] • So that I can do something that is valuable to me and gain satisfaction by doing it – Ease, time-saving – Unique/new/differentiating – NOT so that the company can make money off of me • Intangible
  33. 33. Customer Value Measurement • Customer cost of delay – What I NEED to do (basic/threshold) – What I WANT to do (performance) – What I haven’t thought to do yet (delight/excite)
  34. 34. Customer Value Measurement - Kano Very Satisfied Very Dissatisfied Need FulfilledNeed Unfulfilled
  35. 35. Customer Value Measurement - Kano Very Satisfied Very Dissatisfied Need FulfilledNeed Unfulfilled Basic
  36. 36. Customer Value Measurement - Kano Very Satisfied Very Dissatisfied Need FulfilledNeed Unfulfilled Basic Performance
  37. 37. Customer Value Measurement - Kano Very Satisfied Very Dissatisfied Need FulfilledNeed Unfulfilled Basic Performance Delight
  38. 38. Customer Value Measurement - Kano Very Satisfied Very Dissatisfied Need FulfilledNeed Unfulfilled Time Basic Performance Delight
  39. 39. Activity 2 – 10 minutes • Move feature cards ONLY vertically based on customer value factors • Discuss which buckets each feature could fit into based on what the customer values Lower Value Higher Value Delight: Don’t know I want Performance: I WANT Basic: I NEED
  40. 40. Activity 2 – Debrief • Which features are now the most important customer value factored in? • Which features are more likely to be lower in priority?
  41. 41. What is missing? Customer Feeling Money Run a business Build the right thing
  42. 42. What is missing? Customer Feeling Money Run a business Build the right thing
  43. 43. ROI vs. Kano (Money vs. Feeling) Very Satisfied Very Dissatisfied Need Unfulfilled Time Basic Performance Delight ROI (Valuation = Money) Kano (Value = Feeling)Vs. Value Cost
  44. 44. ROI vs. Kano (Money vs. Feeling) Very Satisfied Very Dissatisfied Need Unfulfilled Time Basic Performance Delight ROI (Valuation = Money) Kano (Value = Feeling)Vs. Value Cost
  45. 45. ROI vs. Kano (Money vs. Feeling) Very Satisfied Very Dissatisfied Need Unfulfilled Time Basic Performance Delight ROI (Valuation = Money) Kano (Value = Feeling)Vs. Value Cost
  46. 46. ROI vs. Kano (Money vs. Feeling) Very Satisfied Very Dissatisfied Need Unfulfilled Time Basic Performance Delight ROI (Valuation = Money) Kano (Value = Feeling)Vs. Program (value stream) Value Cost
  47. 47. Why is value measurement important to me?
  48. 48. Wrap Up • Value is both a verb and a noun (like Agile) • Think about making money and the customer – balance between importance • Development tier (level) can help influence decisions
  49. 49. Questions? Thank you! www.nataliewarnert.com Twitter: @nataliewarnert Email: info@nataliewarnert.com #sgfla Please fill out your feedback for the session!

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