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Lean Value Tree Overview

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A simple deck outlining the Lean Value Tree: A Product Strategy Map. shows alignment to a company mission, separating the Strategic Map from the Tactical Idea alignment and validation.

Published in: Business
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Lean Value Tree Overview

  1. 1. Lean Value Tree The Product Strategy Map
  2. 2. Lean Organisation In a Lean Organisation People are oriented to a common purpose How do we align to a common purpose?
  3. 3. Alignment  The Lean Value Tree (LVT) provides method for aligning strategy to a company mission  A LVT is a simple tool for aligning people at all levels of a business  A Strategic Map that can inform an investment strategy, provides focus limits scope whilst driving value  Provides a light weight communication device that’s easily digestible  A framework for managing scope and maintaining focus  Enables decision making, determining if Tactical Ideas should be invested in  Data driven to guide output in a given direction and understand if we’re being successful  Impact Mapping can fit nicely as an extension method to determine Tactical Ideas
  4. 4. The Lean Value Tree Ambitious Mission Strategic Goal Strategic Goal Strategic Goal Strategic Bet Strategic Bet Promise of Value Promise of Value Promise of Delivery Promise of Delivery Promise of Value StrategicLayerTacticalLayer
  5. 5. Stakeholders Owner** (Investment Case) Accountability C-Suite / Board The road we will travel to achieve company vision Executives / VPs / Division Head Direction Strategy where we will play to achieve mission. Typically business focused success metrics Directors Investment Strategy to deliver goals. Mixed business and customer focused success metrics Managers (e.g. Product Manager) Value Generators to achieve bets. Customer focused value metrics. Delivery Teams (e.g. Product Owner / Technical Lead) Experiments to achieve value. Ambitious Mission Strategic Goal Strategic Bet Promise of Delivery Promise of Value **Stakeholder Roles will vary depending on organisation structure, or the level at which Goals are defined
  6. 6. STRATEGY
  7. 7. Strategy Map Ambitious Mission Strategic Goal Strategic Goal Strategic Goal Strategic Bet Strategic Bet Whats our destination to support the Company Vision? What can we achieve to get us there? What strategies are we betting on to achieve goals?
  8. 8. Lean Value Tree Ambitious Mission Strategic Goal Strategic Bet • What is the Destination to support the company vision? • Where do we want to be? • Who are we as an organisation? • Implicitly says who we are not? • Specific enough to inform decisions • Long Term Stability • What do we need to do to achieve to get to the destination? • Can have a focus on different horizons • Outcome focused, not solutions • Should have a measure of success • Guide for Executive Investment • Long Term Stability • What Strategies are we betting on to achieve goals? • Where will invest time and effort? • Just one way to satisfy the strategic goal • Primary driver is to satisfy the strategic goal • Has its own measure of success • Medium Term Stability
  9. 9. Measure Of Success  Measures of Success are statistics that reliably reveal cause and effect  Persistent, showing that the outcome of a given action at one time will be similar to the outcome of the same action at another time;  Predictive, there is a causal relationship between the action the statistic measures and the desired outcome  Financial metrics can not capture all value creating activities  Other non-financial metrics could be: customer loyalty, customer satisfaction, product quality, etc  Can be qualitative as well as quantitative
  10. 10. TACTICS
  11. 11. Tactical Ideas & Initiatives Strategic Bet How much are we investing? (MVPs) Promise of Value Promise of Value Promise of Delivery Promise of Delivery Promise of Value What Value are we offering to Customers to help us to achieve the bet
  12. 12. Lean Value Tree Promise of Value Promise of Delivery • What Value are we offering to Customers to help us to achieve a bet • Ownership of the Problem, not the solution • Allows room to ideate and experiment • Business Requirements / User Story • Impact Mapping • Hypothesis Driven Development • Experimentation used to find best solution • Scope defined by level of investment • How much are we investing? (MVPs) • SMART - Specific, Measurable, Achievable, Reliable, Time boxed
  13. 13. Systems Thinking: Value When we speak of about value, what we really mean is: “Products, or services, that solve a problem for a customer, or end-user, for which they are willing to exchange some other value, like money.” It could just as well be Time, Information, Energy, or really any form of Currency
  14. 14. Customer View  Who is the customer?  Develop a Total Customers Model – B2C, B2B, Partners, Suppliers, Staff, etc  Customer Focused care about Wants vs Customer Centric care about Needs  Customer Centric – Predicting customer needs and demands  Understanding the user experience, identifying customer problems and conducting customer research  Embed customer thinking  What is the value to the customer?  Validate customer need
  15. 15. Lean Value Tree - Roadmap Strategic Bet Promise of Value Promise of Value Aligned to Bet Requirement Requirement Requirement Promise of Value Promise of Value Promise of Value Promise of Value Strategic Bet Strategic Bet Strategic Bet Filter Promise of Value Promise of Value Promise of Value Promise of Value Promise of Value Roadmap & Product BacklogFiltering Business Requirements ThemeTheme
  16. 16. What is Impact Mapping?  One way of Identifying the tactical PoVs/ & PoDs of an LVT  A fast simple means to elucidate ideas / experiments to achieving a Goal  Identify all stakeholders that can assist reaching the goal (The User of a User Story)  The impacts that the stakeholder can help achieve provides a backlog  The level of impact helps to define priority  Impact Mapping helps to focus Scope  Can be achieved as a single workshop if all the ‘Actors’ can be available
  17. 17. Relating Impact Mapping to LVT Why – Whats the Goal? From the LVT the Goal of Impact Mapping would be the Bet, or a Success Criteria for a Bet Who – Who can help us achieve reaching the Goal / Bet? Provides the customer focus. Can be Someone within the business, end users (customers), 3rd Parties, etc How – What type and size of impact can an actor provide towards reaching he goal? From the LVT this would be equivalent to the Promise of Value What – What deliverables are required to achieve the expected Impact? From LVT this would be equivalent to the Promise of Delivery Bet PoV PoD
  18. 18. RELATED INFORMATION
  19. 19. Related Information  Hoshin Kanri – Lean Policy Deployment / Strategy Deployment  Lean Portfolio Management – Investment Strategy  KPI Trees – Strategic Value  Impact Mapping – Tactical Idea Generation (From Bet to Delivery)  Lean Start Up / Business Model Canvas  Customer Value Map – Customer Value Focus (see also Value Proposition Canvas)  Validated Learning / Hypothesis Driven Development  Kano Analysis

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