Unlike traditional projects, Agile teams realized the importance of prioritizing the product backlog according to it's added value to the business.
In this webinar, we talked about how do Product Owners prioritize product backlog continuously in order to achieve the highest value product while sticking to the schedule and cost constraints.
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Introduction
Agile Projects | Prioritization
It's an initiative for gathering people
interested in Agile, eXtreme Programming
(aka: XP), Scrum, Coding, etc.
The Idea of XP Days was found at
November 2019 and since that we have
conducted lots of knowledge sharing
meetups and webinars.
This is our 16th meetup.
Agile Arena is an Agile Consulting and Training company. We
specialize in agile adoption and transformation for companies
and teams through:
• Designing their agile adoption programs
• Executing our programs and guiding the team through their
journey to sustainable agility .
• We also provide training for teams and individuals to help
them coping with the agility trend in the market.
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Why do we prioritize?
Agile Projects | Prioritization
DISCUSSION
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How do you prioritize?
Agile Projects | Prioritization
DISCUSSION
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What is business value?!
Agile Projects | Prioritization
DISCUSSION
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Agile Projects | Prioritization
“The indispensablefirst step to getting what youwantis this:
Decide what you want.”
- Ben Stein
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Agile Projects | Prioritization
Prioritization Factors
Knowledge
Value Risk
Cost
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Agile Projects | Prioritization
• This alone is often what is meant when product
owners are given the advice to “prioritize on
business value”
• How much money will the organization make or
save by having the new features included
• Estimate its financial impact over a period of time,
usually the next few months, quarters, or possibly
years
Value
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Agile Projects | Prioritization
• Many features seem wonderful until we learn their
cost
• The best way to reduce the cost of change is to
implement a feature as late as possible
Cost
14. Presented By &
Agile Projects | Prioritization
• Product knowledge
• What will be developed
• Features that will be included, and those that will not be included
• Project knowledge
• How the product will be created
• Technologies, skills, and how will the team functions together
• End uncertainty is reduced by acquiring more knowledge about
the product
• Means uncertainty is reduced by acquiring more knowledge about
the project
Knowledge
15. Presented By &
Agile Projects | Prioritization
Knowledge
Acquiring new knowledge is important because at the start of a project we
never know everything that we will need to know by the end of the project
16. Presented By &
Agile Projects | Prioritization
• Schedule risks (“we might not be done by October”)
• Cost risk (“we might not be able to buy hardware for the right price”)
• Functionality risks (“we might not be able to get that to work”)
• Technological risks
• Business risks
Risk
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The four quadrants of the risk-value
relationship
Agile Projects | Prioritization
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MoSCoW Prioritization Scheme
Agile Projects | Prioritization
Mo “Must-have” requirements are the highest in priority, the essential requirements for the system
to work
S “Should-have” requirements are those that are required for the system to work correctly as
intended
Should have requirements can be as important as Must have, however they are often not as
time-critical or there may be another way to satisfy the requirement
Co “Could-have” requirements are those that improve the user experience and obtain more
customer satisfaction
They could be included if the time and cost permit
W “Won’t-have” this time: those are the least critical, lowest payback items that won’t be included
into the next delivery time-box
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Features categories
Agile Projects | Prioritization
• Must-have: a bed, a bathroom, a desk, clean
• The more the better: comfort of the bed, size of the room, variety and
quantity of equipment in the fitness center
• Exciting: built-in televisions on the treadmills, free bottle of water in
my room each day
20. Presented By &
Kano Model of Customer Satisfaction
Agile Projects | Prioritization
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Agile Projects | Prioritization
www.agilearena.net
www.xpdays.org
There is rarely, if ever, enough time to do everything. So, we prioritize.
There is rarely, if ever, enough time to do everything. So, we prioritize.
“prioritize on business value.”
To provide a more practical set of guidelines for prioritizing. We will look at four factors that must be considered when prioritizing the development of new capabilities.
The financial value of having the features
The cost of developing (and perhaps supporting) the new features
The amount and significance of learning and new knowledge created by developing the features
The amount of risk removed by developing the features
This alone is often what is meant when product owners are given the advice to “prioritize on business value”
How much money will the organization make or save by having the new features included
Estimate its financial impact over a period of time, usually the next few months, quarters, or possibly years
Many features seem wonderful until we learn their cost
The best way to reduce the cost of change is to implement a feature as late as possible
Acquiring new knowledge is important because at the start of a project we never know everything that we will need to know by the end of the project
Knowledge about the product, and Knowledge about the project
Product knowledge
What will be developed
Features that will be included, and those that will not be included
Project knowledge
How the product will be created
Technologies, skills, and how will the team functions together
The flip side of acquiring knowledge is reducing uncertainty
Uncertainty about what features the product should contain (End uncertainty)
Uncertainty about how we will build the product (Means uncertainty)
End uncertainty is reduced by acquiring more knowledge about the product
Means uncertainty is reduced by acquiring more knowledge about the project
Acquiring new knowledge is important because at the start of a project we never know everything that we will need to know by the end of the project
Knowledge about the product, and Knowledge about the project
Product knowledge
What will be developed
Features that will be included, and those that will not be included
Project knowledge
How the product will be created
Technologies, skills, and how will the team functions together
The flip side of acquiring knowledge is reducing uncertainty
Uncertainty about what features the product should contain (End uncertainty)
Uncertainty about how we will build the product (Means uncertainty)
End uncertainty is reduced by acquiring more knowledge about the product
Means uncertainty is reduced by acquiring more knowledge about the project
Schedule risks (“we might not be done by October”)
Cost risk (“we might not be able to buy hardware for the right price”)
Functionality risks (“we might not be able to get that to work”)
Technological risks
Business risks
Should a project team start by focusing on high-risk features that could derail the entire project?
Or, Should a project team focus on - the juicy bits – the high-value features that will deliver the most immediate bang for the customer’s buck?
Risk-driven team accepts the chance that work they perform will turn out to be unneeded or of low value. They may develop infrastructural support for features that turn out unnecessary as the product owner refines her vision of the project based on what she learns from users as the project progresses
A team that focuses on value to the exclusion of risk may develop a significant amount of an application before hitting a risk that jeopardizes the delivery of the product
The solution, of course, is to give neither risk nor value total supremacy when prioritizing
High-risk, High-value features are highly desirable to the customer but posses significant development risk. Perhaps features in this quadrant rely on unproven technologies, integration with unproven sub-contractors, technical innovation (such as the development of a new algorithm), or any number of similar risks
The high-value, high-risk features should be developed first. These features deliver the most value and working on them eliminates significant risks
Finally, features that deliver low value but are high-risk are best avoided
How to prioritize work for a new product release
Threshold, or must-have, features
Linear features
Exciters and delighters
Product price is often related to linear attributes
The lack of an exciter or delighter will not decrease customer satisfaction below neutral
Exciters and delighters are often called unknown needs because customers or users do not know they need these features until they see them
Once some amount of a must-have feature has been implemented, customer satisfaction cannot be increased by adding more of that feature. Also, no matter how much of a must-have feature is added, customer satisfaction never rises above the mid-point
Customer satisfaction rises dramatically based on even a partial implementations of an exciter or delighter
Direct relationship between the inclusion of linear features and customer satisfaction
Because must-have features are required for a product to even play in its market segment, emphasis should be placed on prioritizing the development of all threshold features
they need to be available before the product is released. Keep in mind, though, that partial implementation of must-have features may be adequate since gains in customer satisfaction drop off quickly after a base level of support for threshold features has been established
Secondary emphasis should be placed on completing as many linear features as possible. Because each of these features leads directly to greater customer satisfaction, the more of these features that can be included, the better.
at least a few delighters should be prioritized such that they are included in the release plan.
Keep in mind that features tend to migrate down the Kano diagram over time. A short time ago, wireless Internet access in a hotel room was a delighter. Now it’s a linear feature well on its way to becoming a threshold feature.