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@natali
ewarnert
VALUE MAPPING
WITH FEWER DOLLARS
AND MORE SENSE
Natalie Warnert – #Agile2016
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@natali
ewarnert
• 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
AGENDA
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@natali
ewarnert Natalie
Warnert
www.nataliewarnert.co
m
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@natali
ewarnert
PERSONAL
IMPORTANC
E
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@natali
ewarnert
DOCUMENTS
AGILE PRINCIPLES:
Our highest priority is to satisfy the customer
through early and continuous delivery of valuable
software.
SCRUM GUIDE:
A framework within which people can address
complex adaptive problems, while productively and
creatively delivering products of the highest possible
value.
The Product Owner is responsible for maximizing
the value of the product and the work of the
Development Team.
www.agilemanifesto.org, www.scrumguides.org
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@natali
ewarnert
THE FIGHT FOR PRIORITY
PORTFOLI
O
PROGRAM
TEAM
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@natali
ewarnert
Long term roadmaps
Strategy
PORTFOLIO PRIORITY
Performance objectives
Funding allocation
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@natali
ewarnert
PORTFOLIO PRIORITY
Strength: ROI
Deficiency: Being
laser focused
Leads to
inconsistent
messaging and
constant priority
changes. What
features to buy
from what teams?
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@natali
ewarnert
Roadmap alignment
Features:
-Top down
-Laterally
-Bottom up
PROGRAM PRIORITY
Dependency management
Funding projects/teams
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@natali
ewarnert
PROGRAM PRIORITY
Strength:
Value stream
Deficiency:
Correct balance
Balance portfolio
wants with team
constraints across
the product
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@natali
ewarnert
Team roadmap
-Enhancements
-New functionality
-Tech debt
-Defects
Dependencies
TEAM PRIORITY
Constraints
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@natali
ewarnert
TEAM PRIORITY
Strength:
Customer factor
Deficiency:
Bigger picture
Keep focused on
the same thing in
the long run – but
it’s personal.
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@natali
ewarnert
BRAINSTORMING ACTIVITY
What issues have you noticed
between priority valuation at
different levels of the
organization?
Who usually ”wins” and “loses”
these discussions?
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@natali
ewarnert
If
everythin
g is a
priority
than
nothing is
a priority.
”
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@natali
ewarnert
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
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@natali
ewarnert
ROI
Net profit/cost of investment =
ROI
OR… how much can we profit
from this investment
(percentage)?
Tangible
TRADITIONAL VALUE
MEASUREMENT - ROI
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@natali
ewarnert
Cost of Delay – what is the cost of
having NOT done this? [value +
urgency + risk reduction & opportunity
enablement]
TRADITIONAL VALUE
MEASUREMENT – COST OF DELAY
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@natali
ewarnert
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
TRADITIONAL VALUE
MEASUREMENT – COST OF DELAY
Feature Cost of Delay Duration
A $2 2
B $2 1
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@natali
ewarnert
Cost of Delay – what is the cost of
having NOT done this? [value +
urgency + risk reduction & opportunity
enablement]
If we have an equal duration pick the
highest CoD
TRADITIONAL VALUE
MEASUREMENT – COST OF DELAY
Feature Cost of Delay Duration
A $2 2
B $1 2
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@natali
ewarnert
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?
TRADITIONAL VALUE
MEASUREMENT – COST OF DELAY
Feature Cost of Delay Duration
A $2 2
B $2 1
C $1 2
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@natali
ewarnert
Cost of Delay – what is the cost of
having NOT done this? [value +
urgency + risk reduction & opportunity
enablement]
Weighted shortest job first (WSJF)
Implementation and decision to use
CD3 = CoD/Duration
TRADITIONAL VALUE
MEASUREMENT – COST OF DELAY
Feature Cost of Delay Duration CD3 =
CoD/Duration
A $2 2 1
B $2 1 2
C $1 2 1/2
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@natali
ewarnert
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
ACTIVITY 10 MINUTES
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@natali
ewarnert
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.
ACTIVITY DEBRIEF
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@natali
ewarnert
WSJF is important, but not as
important as how we calculate it
TRADITIONAL VALUE
MEASUREMENT
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@natali
ewarnert
WSJF is important, but not as
important as how we calculate it
Cost of Delay [value + urgency + risk
reduction/opportunity enablement]
TRADITIONAL VALUE
MEASUREMENT
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@natali
ewarnert
WSJF is important, but not as
important as how we calculate it
Cost of Delay [value + urgency + risk
reduction/opportunity enablement]
And duration…
TRADITIONAL VALUE
MEASUREMENT
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@natali
ewarnert
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
TRADITIONAL VALUE
MEASUREMENT
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@natali
ewarnert
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
TRADITIONAL VALUE
MEASUREMENT
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@natali
ewarnert
But the customer does not care
about value as a measure
CUSTOMER VALUE
MEASUREMENT
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@natali
ewarnert
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
CUSTOMER VALUE
MEASUREMENT
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@natali
ewarnert
As a…I want…so that…
CUSTOMER VALUE
MEASUREMENT
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@natali
ewarnert
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
CUSTOMER VALUE
MEASUREMENT
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@natali
ewarnert
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
CUSTOMER VALUE
MEASUREMENT
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@natali
ewarnert
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)
CUSTOMER VALUE
MEASUREMENT
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@natali
ewarnert
CUSTOMER VALUE
MEASUREMENT - KANO
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
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@natali
ewarnert
CUSTOMER VALUE
MEASUREMENT - KANO
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Basic
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@natali
ewarnert
CUSTOMER VALUE
MEASUREMENT - KANO
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Basic
Performance
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@natali
ewarnert
CUSTOMER VALUE
MEASUREMENT - KANO
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Basic
Performance
Delight
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@natali
ewarnert
CUSTOMER VALUE
MEASUREMENT - KANO
Very Satisfied
Very Dissatisfied
Need FulfilledNeed Unfulfilled
Time
Basic
Performance
Delight
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@natali
ewarnert
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
ACTIVITY 2 – TEN MINUTES
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@natali
ewarnert
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
ACTIVITY 2 – TEN MINUTES
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@natali
ewarnert
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
ACTIVITY 2 – TEN MINUTES
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@natali
ewarnert
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
ACTIVITY 2 – TEN MINUTES
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@natali
ewarnert
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
ACTIVITY 2 – TEN MINUTES
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@natali
ewarnert
Which features are now the most
important customer value factored
in?
Which features are more likely to
be lower in priority?
ACTIVITY 2 - DEBRIEF
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@natali
ewarnert
Customer
Feeling
Money
Run a
business
Build the
right thing
WHAT IS MISSING?
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@natali
ewarnert
WHAT IS MISSING?
Customer
Feeling
Money
Run a
business
Build the
right thing
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@natali
ewarnert
Time
Basic
Performance
Delight
ROI (Valuation =
Money)
Kano (Value = Feeling)Vs.
Value
Cost
ROI VS. KANO – MONEY VS. FEELING
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@natali
ewarnert
Time
Basic
Performance
Delight
ROI (Valuation =
Money)
Kano (Value = Feeling)Vs.
Value
Cost
ROI VS. KANO – MONEY VS. FEELING
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@natali
ewarnert
Time
Basic
Performance
Delight
ROI (Valuation =
Money)
Kano (Value = Feeling)Vs.
Value
Cost
ROI VS. KANO – MONEY VS. FEELING
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@natali
ewarnert
Time
Basic
Performance
Delight
ROI (Valuation =
Money)
Kano (Value = Feeling)Vs.
Program (value stream)
Value
Cost
ROI VS. KANO – MONEY VS. FEELING
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@natali
ewarnert
PERSONAL
IMPORTANC
E
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@natali
ewarnert
• Development tier (level) can
help influence decisions
• Value is both a verb and a noun
(like Agile)
• Think about making money and
the customer – balance
between importance (activity)
WRAP UP
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@natali
ewarnert
THANKS
FOR
COMING
www.nataliewarnert.com
#agile2016
@nataliewarnert
Prevent crashes
Limited resources of time and money.
-Has anyone experienced this type of thing
Stability, security, and flashiness. We work the entire year to build up the site and then at the busiest time turn off a lot of the new functionality to improve performance and prevent issues.
Ended up with a list of 30 critical defects and had to choose which ones we would be allowed to fix and get into the final builds of the freeze (which were pushed off a few extra days). At that point,
how do we justify the value?
defects differently than we looked at new functionality in general.
So we looked at what was important for the freeze – security, stability, executive investment/interest, moron factor (spelling error on cart page)…this was a new way to look at what NEEDS to be done – why can’t it expand to program level roadmaps? Is it always about dollars earned? Dollars saved? No – there are many other things to consider…
This is more valuable than that. Priority can look very different at different levels or the organization
Finite resources = conflict
“Something happens” – exec pet project
There are different goals and motivations driving what should be “one” strategy, but it never is a single strategy.
Chicken and egg question? Do we make money and invest it to make the customer happy or do we make the customer happy and therefore we make money? Different areas in the development stack look at value differently.
Value return to the company
Where is the money coming from and going to--- disconnect with what is actually being built on the ground/team level
Where should I invest this money? What features should I buy from which teams? What product line is doing well and should we invest in? Those lines that are performing the best and are probably focusing on their users so that makes for a difficult decision – feed those teams or invest in teams that are not doing as well? Finite resources drive the need to make these decisions.
Laser focus and understanding the lower level issues that are contributing to some of the priority discussion we see at a higher level. Constraints that teams feel are not felt at the portfolio level – they are usually extrapolated and are harder to get to the root issue (example? Dependencies between teams, arch/infra constraints, devops and RM issues)
They do not understand how their actions impact and disrupt at the program and team level – reprioritizing of features,
pet projects,
needing to “see” to believe, not attending demos and then later trying to incorporate feedback – all of this delays value delivery.
Level does not exist in most companies – can utilize collective personas (JTBD and user journeys). They can see the picture at multiple levels and understand what is driving value and what is not but often get stuck resolving most disagreements and managing expectations
Discuss – ORV wants to know where their money will be spent and how much of a feature they will be funding and when they will see it
-PG & A does not put in enough money but their features need to be done first from a program and product dependency perspective.
This is often shown at the program level and directly affects team and portfolio, program is stuck in the middle
Budgeting and funding decisions are leading to poor directional decisions based on short term returns and a less than ideal user experience
Poor budgeting models based on funding projects v. teams can contribute to this issue of building the wrong thing and not managing expectations
Can understand and see how things are implemented
the value they could bring as well as
managing the expectations of many different levels in the organization.
It is difficult to balance expectations, budget, and value, though as things are constantly changing.
Teams are at the close level. They know what is being built and how it will affect the customer (or how it will not). They know how it will affect themselves.
Often teams feel the constraints very closely because they feel the need to deliver everything because priority decisions cannot happen. Or when priorities change there is a lot of throw away work.
How many times is the solution “hacked” together? How many times does it “work on my local machine?” Does it work for one area and not integrate with other solutions or with other things? How many firedrills when another team did something similar or is thinking about doing something similar?
Can translate the value to persona – sometimes cannot see the entire picture and how it relates to the business
Are they discussions at all?
Noun: regard that something is held to deserve, worth, usefulness
Verb: valued at – estimate the monetary worth
Run the business
Tangible makes us feel safe – we can assign a number to it, even if it is a wrong number
How often have you heard “just put a number on it?” How often have you said it? How often have you needed to make some numbers match or look profitable, successful, efficient, effective
How much will we lose if we wait (opportunity cost)
Value – cust and business
Urgency – is there a deadline? Regulation? Event?
RR – is this something that is risky? Competition? Some event (e.g. Holiday)
OE – competition? Is there a window? (First to have something, need to match or beat someone else – also urgency).
How much will we lose if we wait (opportunity cost)
Value – cust and business
Urgency – is there a deadline? Regulation? Event?
RR – is this something that is risky? Competition? Some event (e.g. Holiday)
OE – competition? Is there a window? (First to have something, need to match or beat someone else – also urgency).
How much will we lose if we wait (opportunity cost)
Value – cust and business
Urgency – is there a deadline? Regulation? Event?
RR – is this something that is risky? Competition? Some event (e.g. Holiday)
OE – competition? Is there a window? (First to have something, need to match or beat someone else – also urgency).
How much will we lose if we wait (opportunity cost)
Value – cust and business
Urgency – is there a deadline? Regulation? Event?
RR – is this something that is risky? Competition? Some event (e.g. Holiday)
OE – competition? Is there a window? (First to have something, need to match or beat someone else – also urgency).
WSJF is the implementation of CD3 and the decision to use
SAFe and Lean implementation
Assuming WIP = 1
4:05 activity start
4:15 activity complete
4:20
Should there be one “right answer”? Probably not. Should make some of the features the same or close WSJF and CoD? – check on this?
Gives us the most value for the least effort to:
Gives our customer the most value for the least effort…
Tangible = blame, we feel wrong, are we punished? What about how the customer feels?
Often the components are forgotten about for CoD
Look to do something else with the greater than/less than sign – maybe add descriptor in front of/behind value and then effort?
Tangible = blame, we feel wrong, are we punished? What about how the customer feels?
Often the components are forgotten about for CoD
Tangible = blame, we feel wrong, are we punished? What about how the customer feels?
Time
Risk
Scope
Value
What is lost…?
Gives us the most value for the least effort to:
Gives our customer the most value for the least effort…
But it feels good because it’s tangible = blame, we feel wrong, are we punished?
This estimate was wrong, we were wrong, we spent too much, took too much time, didn’t get the results.
What about how the customer feels?
Value to the company as a measure. In most cases…
The ”so that” is not usually so that the company I’m paying can make money. It’s so I can do something. The value is me doing something – the value is a thing, not an amount/measure.
Though that is usually what happens because that is how the company stays in business. But it is not the first thought of the customer.
Intangible and hard to assign a number to…
Retail example…
Time: it becomes commonplace after time and delights/performance turn into base expectations…search, save example, pay with something other than a credit card (before paypal you needed to have a credit card – teenager story when I had to beg to use a credit card to buy things online)
Time: it becomes commonplace after time and delights/performance turn into base expectations…search, save example, pay with something other than a credit card (before paypal you needed to have a credit card – teenager story when I had to beg to use a credit card to buy things online)
Time: it becomes commonplace after time and delights/performance turn into base expectations…search, save example, pay with something other than a credit card (before paypal you needed to have a credit card – teenager story when I had to beg to use a credit card to buy things online)
Time: it becomes commonplace after time and delights/performance turn into base expectations…search, save example, pay with something other than a credit card (before paypal you needed to have a credit card – teenager story when I had to beg to use a credit card to buy things online)
Time: it becomes commonplace after time and delights/performance turn into base expectations…search, save example, pay with something other than a credit card (before paypal you needed to have a credit card – teenager story when I had to beg to use a credit card to buy things online)
When you are done it will look like this…
Add diagram of where factors are here…
Explain why I valuated these in this way. Delights – can be a differentiator or can flop, but if you don’t have basic needs met they mean nothing.
Start at 4:30
End at 4:40
When you are done it will look like this…
Add diagram of where factors are here…
Explain why I valuated these in this way. Delights – can be a differentiator or can flop, but if you don’t have basic needs met they mean nothing.
Start at 4:30
End at 4:40
When you are done it will look like this…
Add diagram of where factors are here…
Explain why I valuated these in this way. Delights – can be a differentiator or can flop, but if you don’t have basic needs met they mean nothing.
Start at 4:30
End at 4:40
When you are done it will look like this…
Add diagram of where factors are here…
Explain why I valuated these in this way. Delights – can be a differentiator or can flop, but if you don’t have basic needs met they mean nothing.
Start at 4:30
End at 4:40
When you are done it will look like this…
Add diagram of where factors are here…
Explain why I valuated these in this way. Delights – can be a differentiator or can flop, but if you don’t have basic needs met they mean nothing.
Start at 4:30
End at 4:40
4:45 move on
What order were they actually implemented in?
ISPU, Save, Save for Later, filters
Required Accessories
ApplePay
Gift packaging
Responsive
Add image here – label with what the lines are called… Eric
But what about those damn executive pet projects?? How do we show this to folks that are not into cards and valuation in this way?
Where do I add relative estimation into this?
Add image here – label with what the lines are called… Eric
But what about those damn executive pet projects?? How do we show this to folks that are not into cards and valuation in this way?
Where do I add relative estimation into this?
Add image here – label with what the lines are called… Eric
But what about those damn executive pet projects?? How do we show this to folks that are not into cards and valuation in this way?
Where do I add relative estimation into this?
Add image here – label with what the lines are called… Eric
But what about those damn executive pet projects?? How do we show this to folks that are not into cards and valuation in this way?
Where do I add relative estimation into this?
Bring this back around – needed to look at not just what is going to make us money, but also what customers want/need and what will keep the site up and stable. It needs to balance out and by admitting we cannot do everything we are making one step toward progress.
Fixed about the top 8 defects and site did not go down.
Add diagram of where factors are here