The Agile Business Gap
www.brainmates.com.au
Nick Coster
Co-Founder and
Head of Training Services
We are a Product Management
Consulting and Training business.
We work with product teams across
varied industries, companies and
organisational sizes.
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
The Agile Business Gap
Business Development
The Vision of an
Agile Business is…
The Vision of an
Agile Business is…
Earlier realisation of
business benefits by
prioritising for
business and market
value.
The Vision of an
Agile Business is…
Delivery of
smaller and
more regular
product features
to the market.
The Vision of an
Agile Business is…
Increased business
collaboration and
transparency
throughout the
development.
The Vision of an
Agile Business is…
Reduction of risk
through faster
learning from the
market.
But…
… we have observed a
repeating problem in many
existing business where Agile
is implemented.
Agile starts well…..
….. but then GAPS start to
appear between the business
and the development team.
These are
Agile Business Gaps
What causes the
Agile Business
Gap?
Page Text
Business Definition
Development Definition
AGILE
20
Traditional Product Development
Idea
Business
Case
Design
Build
Market
Launch
21
Traditional Product Development
Idea
Business
Case
Design
Build
Market
Launch
Likelihood of Market Fit
diminishes over time
High
Low Time
MarketFit
22
Agile methods are introduced
to deliver better products to
market faster.
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
But when a development
team “Goes Agile” other
things break.
Why?
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
26
Idea
Business
Case
Design
Build
Market
Launch
Agile Product Development
The impacts of
introducing Agile will
be felt throughout the
process…
The Vision of an
Agile Business is…
?!
Gap 1:
Product
Management
Resource Gap
29
Idea
Business Case
Design
Build
Market Launch
Agile Product Development
In an Agile team there is a
Product Owner
But where do
“Product Owners”
come from?
By default the Agile team
turns to the
Product Manager…
IMPACT:
When a Product Manager
also acts as the Agile Product
Owner, both the product and
the Agile project suffers.
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.
Make it clear!
Business “Product Owner”
≠
Agile “Product Owner”
Business “Product Owner”:
Responsible for Product
Profit and Loss $$
Agile Product Owner:
Responsible for prioritisation
of user stories to increase
customer and business
value.
Outcome:
Appropriate Product Owner
resourcing allows for better
communication and delivery
through job specialisation.
Gap 2:
Agile Product
Management Gap
40
Idea
Business Case
Design
Build
Market Launch
Agile Product Development
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.
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.
Product Manager converts
high level Business Case
objectives into more
granular requirements.
Signoffs and Approvals
These documents need to be
“complete” before they are
signed off.

IMPACT:
With no changes to the
signoff and approval stages
the benefits of an Agile team
are wasted.
Tip 2
Develop requirements in
“Discovery Sprints” of the same
length as Agile team Sprints.
Signoffs at the end of each
Sprint.
Prioritise Business
Case outcomes by
market segment
value.
Segment A
Segment B
Segment C
Segment D
Highest Business Value
Lowest Business Value
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
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
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
Outcome:
Alignment of sprint cycles
delivers regular small parts of
Business value with the
traditional process.
Gap 3:
Business Case Gap
53
Idea
Business
Case
Design
Build
Market
Launch
Agile Product Development
Business Case funding is for
projects, NOT continuous
delivery of a product in the
market.
Continuous
Product DeliveryProjects
Established Organisations
Project Focused Funding.
Need to know project costs
before project starts.
Want to spend as Capital
Expenditure for accounting.
IMPACT:
It is more difficult to get
projects funded when the
costs are so “Flexible”.
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.
Outcome:
Simplifies business case
costing.
Smaller projects, more often
embraces faster learning
from the market.
Is your Business Agile?
How will you close the Agile
Business Gap?
Business Development
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The Agile Business Gap - By Nick Coster

Editor's Notes