This document introduces several agile business analysis techniques for deciding what to build: 1. The Business Value Goal Model makes business value assumptions explicit by modeling goals, objectives, and focus areas. 2. The Customer Value Profile makes explicit what matters most to end users and customers through a customer experience lifecycle map. 3. The Capability Model focuses efforts by prioritizing capabilities according to business value, performance gaps, and change effort. 4. The A3 problem-solving tool provides clarity of purpose by prioritizing initiatives for delivering value and maximizing unfinished work.

1. An introduction to Agile Business Analysis Techniques A survey of tools to decide what to build

2. Why is this hard? #1. Business value is unarticulated #2. We have insufficient views of what matters to our end users and customers #3. We don’t have a way to focus our efforts #4. We don’t have clarity of purpose

3. #1. Business value is unarticulated Make business value assumptions explicit Business Value Goal Model

4. Business Value Goal Model Tire Manufacturer Fix the Tires

5. Business Value Goal Model Tire Manufacturer Survive by re-establishing credibility Thematic Goal Fix the Tires Repair Distributor Relationships Improve PR Address Morale Settle Lawsuits Focusing Objectives

6. Business Value Goal Model Tire Manufacturer Survive by re-establishing credibility Thematic Goal Fix the tires Settle lawsuits Address morale Repair distributor relationships Improve PR Focusing Objectives Revenue Customer Satisfaction Market share Production levels Expenses Standard Objectives

7. #1. Business value is unarticulated Make business value assumptions explicit Business Value Goal Model Overcoming Politics Silo’s and Turf Wars, Patrick Lencioni, Jossey-Bass, 2006 Light Weight Context for conversation and shared understanding about strategy and business value

8. #2. We have insufficient views of what matters to our end users or customers Be explicit about what matters to the customer Customer Value Profile

9. Customer Value Map Example Customer Attributes in the Experience Lifecycle

10. Customer Value Map Example high Starbucks Emphasis Industry low quality speed convenience fashion selection ambiance price location serviceexpertise factors of customer experience

11. #2. We have insufficient views of what matters to our end users or customers Be explicit about what matters to the customer Customer Value Profile Charting Your Company’s Future, W. Chan Kim and Renee Mauborgne, HBR, June 2002 Identify Specific Gaps Context for Performance Conversation Long Lived Value

12. #3 We don’t have a view to focus our efforts Focus on the next most important opportunity Capability Model

13. Capability Describe the target business or product as a set of outcomes – or capabilities. Verb - Noun Verb - Noun

14. Capability Remains Stable over Time Pay Employees Verb - Noun

15. Capability Business Value Pay Employees KEY High Value Medium Value Low Value

16. Capability Business Value Produce Tires KEY High Value Medium Value Low Value

17. Capability Performance Gaps Business Value Produce Tires KEY High Value Medium Value Low Value Low Performing Medium Performing High Performing

18. Capability Performance Gaps Business Value Produce Tires Risk Risk Business Risk Technology Risk Organizational Risk Market Risk KEY High Value Medium Value Low Value Low Performing Medium Performing High Performing High Risk Moderate Risk Low Risk

19. Backlog Against the Capability Model High Value Medium Value Low Value Low Performing Medium Performing High Performing Hard to Change Moderate Effort to Change Easy to Change

20. #3 We don’t have a view to focus our efforts Focus on the next most important opportunity Capability Model The Next Revolution in Productivity, Merrifield, Calhoun and Stevens, HBR, June 2008 Stable model Updates as performance improves Low friction to maintain once established Easy to revaluate if strategy changes

21. We don’t have clarity of purpose Prioritize efforts, not on starting, but on delivering value, then maximize the amount of work not done to deliver that value A3 Focusing Tool

22. Maximize the amount of work not done

23. A3 Problem Solving: Overview

24. A3 Problem Solving: Outcome

25. A3 Problem Solving: Analysis

26. A3 Problem Solving: Plan

27. We don’t have clarity of purpose Prioritize efforts, not on starting, but on delivering value, then maximize the amount of work not done to deliver that value A3 Focusing Tool Managing to Learn, John Shook, Lean Enterprise Inc., January 2008 Shared understanding of what and why Initiatives / or epics are very focus and clearly tied to business and customer value Light weight approach communicates more than detailed requirements

28. Focus on finishing B C A 3 managers, 3 equally important initiatives. B C A B C A We try to show progress every month A A A B B B C C C This way each manager sees progress every period …but the business gets no benefit before period 7. Or we can establish an organizational priority A A A B B B C C C Preference is shown but the business realizes benefit sooner And task switching and interruptions make the difference more stark A A A B B B C C C What is the impact of an expedite request?

30. Focus on Finishing