Value-Driven Delivery

PMI Agile Certified Practitioner
(PMI-ACP) ®
Ahmed Yousry Abdelaziz

CEO, Portolearn & Nileage LLC
ahmedyabdelaziz
PMI Agile Certified Practitioner
(PMI-ACP)®
Value-Driven Delivery
Course Content
Introduction: About the PMI-ACP® Exam Chapter 4: Team Performance

Chapter 1: Agile Principles and Mindset Chapter 5: Adaptive Planning
Chapter 2: Value-Driven Delivery Chapter 6: Problem Detection and Resolution
Chapter 3: Stakeholder Engagement Chapter 7: Continuous improvement
Objectives
• By the end of this domain, you will understand:

▪ Value & Prioritization, incremental delivery.
▪ Maximizing business value,
▪ Product Backlog,
▪ Testing, and validation,
▪ Metrics and KPI’s,
▪ Reviews & Feedback,
▪ EVM Terminologies, and
▪ Agile Contracts.
DOMAIN Value-driven Delivery
TASKS 4 Sub-Domains, 14 Tasks
#2
Exam Percentage: 20%
(24 Exam Questions)
Value-driven Delivery
Deliver valuable results by producing high-value increments for review,

early and often, based on stakeholder priorities. Have the stakeholders
provide feedback on these increments, and use this feedback to
prioritize and improve future increments.
‫ مبكرا ومتكررا بناء على‬،‫قیمة من خالل إنتاج منتجات عالیة القیمة بشكل متزايد للمراجعة من قبل العميل‬
ّ ‫تقديم نتائج‬
ّ
.‫ وإستخدم ھذه المالحظات لترتیب األولویات المستقبلیة مع تحسینھا‬،‫ تقدیم المعنیین للمالحظات‬.‫أولویات المعنیین‬
Domain Tasks
• Define Positive Value ‫• تحديد القيمة اإليجابية‬

• Task #1 1# ‫• المهمة‬
▪ Define deliverables by identifying units ‫▪ تحديد التسلیمات وذلك عن طريق التعرف‬
that can be produced incrementally in ‫نحو متزاید‬
ٍ ‫الوحدات التي یمكن إنتاجھا على‬
order to maximize their value to
stakeholders while minimizing non- ‫وذلك تعظيم وتوصيل التسليمات القیمة‬
value added work. ‫ألقصى حد ممكن للمعنیین مع تقلیل‬
.‫التسليمات التي ال تضیف قیمة‬
Domain Tasks

▪ Refine requirements by gaining ‫تحسين المتطلبات وذلك من خالل الحصول‬
ّ ▪
consensus on the acceptance criteria ‫على إجماع على معاییر القبول للخصائص‬
for features on a just-in-time basis in
order to deliver value. ‫(المميزات) على أساس تسلیم القیمة‬
.‫بالتوقیت المناسب‬
Domain Tasks

▪ Select and tailor the team’s process ‫▪ تحدد وتخصيص عملیات فریق العمل بناءٍ على‬
based on project and organizational ‫المشروع وخصائص المؤسسة وكذلك بناء‬
characteristics as well as team
experience in order to optimize value ‫على خبرة فریق العمل لتحسین تسلیم‬
delivery. .‫القیمة‬
Domain Tasks
• Avoid Potential Downsides ‫تجنب السلبیات المحتملة‬

ّ •
▪ Plan for small releasable increments by ‫▪ التخطيط لعمل إصدارات تزايدية صغیرة قابلة‬
organizing requirements into Minimally ‫للتشغيل وذلك عن طريق تنظیم المتطلبات‬
Marketable Features (MMF)/Minimally
Viable products in order to allow for ‫إلى خصائص قابلة للتسویق ذات حد أدنى‬
the early recognition and delivery of ‫ منتجات قابلة للتطبیق ذات حد‬/ )MMF(
value. ‫) وذلك يسمح باإلدراك المبكر‬MVP( ‫أدنى‬
.‫للقیمة وتسلیمھا‬
Domain Tasks

ّ •
▪ Limit increment size and increase ‫▪ تحديد حجم التزايدات مع زيادة مرات تكرار‬
review frequency with appropriate ‫ وذلك‬،‫المراجعة مع المعنیین المناسبین‬
stakeholders in order to identify and
respond to risks early on and at ‫لتحدید المخاطر واالستجابة لھا بشكل مبكر‬
minimal cost. .‫وبأدنى تكلفة‬
Domain Tasks

ّ •
▪ Solicit customer and user feedback by ‫▪ حث وطلب المالحظات والمراجعات للعمالء‬
reviewing increments often in order to ‫ وذلك عن طریق مراجعة‬،‫والمستخدمین‬
confirm and enhance business value.
.‫الزیادات للتأكید من قیمة األعمال وتعزیزھا‬
Domain Tasks
• Prioritization ‫• تحدید األولویات‬

▪ Prioritize the units of work through ‫▪ تحديد أولویة وحدات العمل من خالل التعاون‬
collaboration with stakeholders in .‫مع المعنیین وذلك لتحسین قیمة التسلیمات‬
order to optimize the value of the
deliverables.
Domain Tasks

▪ Perform frequent review and ‫بشكل متكرر مع‬
ٍ ‫▪ تنفيذ مراجعة لنتائج العمل‬
maintenance of the work results by ‫الحفاظ علیھا وذلك من خالل إعطاء أولویة‬
prioritizing and maintaining internal
quality in order to reduce the overall ‫للجودة الداخلیة والحفاظ علیھا مما يؤدي‬
cost of incremental development. .‫الي تقلیل التكلفة اإلجمالیة للتطویر التزایدي‬
Domain Tasks

▪ Continuously identify and prioritize the ‫▪ تحديد العوامل البیئیة والتشغیلیة وعوامل‬
environmental, operational, and ‫ مع تحديد أولویتھا بشكا‬،‫البنیة التحتیة‬
infrastructure factors in order to
improve the quality and value of the .‫مستمر لتحسین جودة التسلیمات وقیمتھا‬
deliverables.
Domain Tasks
• Incremental Development ‫• التطوير التزايدي‬

▪ Conduct operational reviews and/or ‫أو نقاط‬/‫▪ القيام بإجراء مراجعات تشغیلیة و‬
periodic checkpoints with stakeholders ‫تحقق بالتعاون مع المعنیین وذلك للحصول‬
in order to obtain feedback and
corrections to the work in progress and ‫على مالحظات وتصحیحات على العمل قید‬
planned work. .‫التنفیذ والعمل المخطط تنفیذه‬
Domain Tasks

▪ Balance development of deliverable ‫▪ التوازن بین تطویر وحدات التسلیمات وجھود‬
units and risk reduction efforts by ‫تقليص (تقليل) المخاطر وذلك عن طریق دمج‬
incorporating both value producing and
risk reducing work into the backlog in ‫كل من أعمال إنتاج القیمة وأعمال تقليص‬
ٍ
order to maximize the total value )‫المخاطر في سجل مهام (قائمة أعمال‬
proposition over time. ‫للوصول بإجمالي القیمة المقترحة إلى أقصى‬
.‫حد لھ بمرور الوقت‬
Domain Tasks

▪ Re-prioritize requirements periodically ‫بشكل منتظم‬
ٍ ‫▪ إعادة تحدید أولویة المتطلبات‬
in order to reflect changes in the ‫لتعكس تغیرات بالبیئة وإحتیاجات المعنیین أو‬
environment and stakeholder needs or
preferences in order to maximize the ‫تفضیالتھم وذلك لزیادة القیمة للحد‬
value. .‫األقصى‬
Domain Tasks

▪ Elicit and prioritize relevant non- ‫▪ إسطنباط المتطلبات الغیر وظیفیة ذات الصلة‬
functional requirements (such as )‫مع تحديد أولویاتھا (مثل العملیات واألمن‬
operations and security) by considering
the environment in which the solution ‫سیستخدم فیھا‬
ُ ‫من خالل وضع البیئة التي‬
will be used in order to minimize the ‫ وذلك لتقلیل إحتمالیة الفشل إلى‬،‫الحلول‬
probability of failure. .‫الحد األدنى‬
Domain Tasks

▪ Conduct frequent reviews of work ‫▪ القيام بإجراء مراجعات متكررة لمنتجات العمل‬
products by performing inspections, ‫عن طریق إجراء عملیات تفتیش ومراجعات‬
reviews, and/or testing in order to
identify and incorporate improvements ‫أو إختبارات لتحدید التحسینات مع دمجھا‬/‫و‬
into the overall process and .‫الخدمة الشاملة‬/‫بالعملیة والمنتج‬
product/service.
Introduction
Wait … Wait, Put your hands down. I know you’ve a thousand ideas for
all the cool feature iTunes could have. So, do we.
But we don’t want a thousand features.
Innovation is not about saying ‘yes’ to everything.

Innovation is about saying ‘no’ to all but the most crucial features.
Steve Jobs
Project Success
Value
Definition
What is Value?
A measure of benefit created through delivery of goods or services.
Value is NOT always related to monetary benefits, significant increase

in customer satisfaction also delivers value to the organization.
PMI, ACP are registered marks of the Project Management Institute, Inc.
Value
An organization can choose different • Revenue per Employee
measures to gauge the value deliver. • Innovation Rate
Customer Satisfaction
Some of them are: •
• Employee Satisfaction
• Customer Usage
• Customer Retention
• Repeat Customer
• Return on Investment (ROI)
Forecasting Value
Definition
Forecasting Value
All projects require forecasting such as:

• Cost,
• Schedule,
• Budget,
• Resource requirements, and
• Technology trends.
Forecasting value
The most Agile organization require forecasts.

Forecasting the value of a project helps organization:
• Decide whether the project is beneficial to proceed or to stop the
project (Fail Fast).
Forecasting value
Product Owner (PO) is responsible for maximizing the project value;

however inputs can be provided by entire project team.
Time Value of Money
Definition
Time Value of Money
Time Value of Money is a key concept to be considered while forecasting

the expected value return of the project.
This concept implies that the money available in the present is worth more in the future, and the
potential to earn more money through interest is capitalized.
Time Value of Money
Project Selection Models
Non-Numeric Models Numeric Models

Time Value of Money
• The Non-numeric models has the following types:

▪ The Sacred Cow
▪ The Operating Necessity
▪ The Competitive Necessity
▪ The Product Line Extension
▪ Comparative Benefit
Time Value of Money
• The numeric models has the following types:

Time Value of Money
• Benefit Measurement Methods (Comparative Approach)

▪ Economic Models.
• 1. Net present value
• 2. Internal rate of return
• 3. Payback period
• 4. Cost-benefit analysis
▪ Net present value (NPV)
▪ Internal rate of return (IRR)
▪ Payback Period (PBP)
▪ Cost-benefit analysis (BCR)
▪ Murder Board
▪ Peer Review
▪ Scoring Models
Time Value of Money
• Constrained Optimization Methods (Math. Approach)

▪ Linear Programming.
▪ Nonlinear Programming.
▪ Integer Programming.
▪ Dynamic Programming.
▪ Multi-Objective Programming.
Economic Models: Present Value (PV)
The current worth of a future sum of money or stream of cash flows given a
specified rate of return.
Future cash flows are discounted at the discount rate, and the higher the
discount rate, the lower the present value of the future cash flows.
• Economic Models: Present Value (PV)

• Economic Models: Present Value (PV)

▪ What is the present value of $300,000 received three years from now if we expect the
interest rate to be 10%?
• Should the answer be:
– A. More than $300,000?
– B. Less than $300,000?
Economic Models: Net Present Value (PV)
The present value of the total benefits (income or revenue) minus the costs
over many time periods.
Generally, if the NPV is positive, the investment is a good choice unless an
even better investment opportunity exists.
THE PROJECT WITH THE GREATEST (NPV) IS SELECTED.
Economic Models: Net Present Value (PV)
Economic Models: Internal Rate of Return (IRR)
If a company has more than one project in which to invest, the Company may
look at the returns of the different projects and then select the project with
the highest return.
Internal Rate of Return (IRR) is used to evaluate the attractiveness of a project
or investment.
THE PROJECT WITH THE GREATEST (IRR) IS SELECTED.
Economic Models: Internal Rate of Return (IRR)
• EXAMPLE:
▪ An organization has two projects from which to choose:
• A. Project A with an IRR of 21%
• B. Project B with an IRR of 15%
▪ Which one is a better option?
The correct answer is: Project A

Economic Models: Payback Period
The length of time required for an investment to recover its initial outlay in
terms of profits or savings.
The time necessary to recover the cost invested in the project.
THE PROJECT WITH THE LOWEST (PAYBACK PERIOD) IS SELECTED.
• There are two projects from which to choose:

▪ A. Project A with a payback period of 6 months
▪ B. Project B with a payback period of 18 months.
• Which one should the organization select?
The correct answer is: Project A

Economic Models: Cost-Benefit Analysis
Compares (the expected costs)* of the project

to (the potential benefits/revenue)* it could bring the organization.
• Expected Costs: Present Value of Inflow OR the cost invested in a project
• Potential Benefits/Revenue: Present Value of Outflow OR the value of return from the project.
THE PROJECT WITH THE GREATEST (BCR) IS SELECTED.

• A Benefit Cost Ratio (BCR) of greater than (1) means:

▪ The benefits are greater than the costs.
• A Benefit Cost Ratio (BCR) of less than (1) means

▪ The costs are greater than the benefits.
• A Benefit Cost Ratio (BCR) of (1) means

▪ The costs and benefits are the same
Plan-Driven vs. Value Driven
Comparison
Plan-Driven Cost/Value Curve
Agile Cost/Value Curve
Agile Cost/Value Curve
Financial Return
Time-To-Market
Risk
Value-Driven Delivery Principles
Prioritization Techniques
Minimal Viable Products

Pareto Rule
Pareto Rule
Prioritization
What is Prioritization?
Prioritization
The key purpose of prioritization is to identify the high value features

and get them delivered on priority. This helps organizations provide
maximum benefits to the customer.
‫ إن ذلك‬.‫الغرض األساسي من تحديد األولويات هو تحديد الميزات ذات القيمة العالية مع الحصول عليها في بداية المشروع‬
.‫يساعد المؤسسات على توفير أقصى إستفادة للعمالء‬
Prioritization
• Prioritization can helps to:

▪ Decide the order of requirements for the team to work on.
▪ Adjusts the scope to meet budget or timeline objectives while retaining a useful
set of functionality or Minimum Marketable Release.
▪ Helps in deciding the release planning, iteration planning, and insertion of new
requirements.
▪ Determines the low priority or non-value adding tasks to avoid working on

them.
Prioritization
Factors in Prioritization
Agile Customer-Value Prioritization
The product owner should continuously assess the product backlog &
prioritize the requirement based on their customer-value.
Determining Customer-Value involves activities such as Collaborating

with customers, Creating focus groups, and Reducing technical debt.
Which addresses quality and improves delivery throughout.
The following aspects must be factored:
▪ Focus on innovation.
• Moves to efficiency & optimization.
• Innovation usually offers the highest levels of value creation in a company’s project portfolio.
▪ Focus on execution.
• Project leaders focus on delivery and add value to projects.
▪ Lean Thinking.
• Systematic elimination of waste.
Prioritization
Level of Prioritization
Prioritization
Factor to consider
• Business Value & ROI

• Dependencies
• Resource Availability
The Product Owner, and the Team must have a clear understanding of
the techniques to be implemented with each priority.
There are three techniques that can be applied within Agile:

• MoSCoW.
• Kano Module.
• Relative Weighting.
The process of continuously prioritizing the backlog is known as “Pruning the Backlog”
MoSCoW
MoSCoW
Dynamic Systems Development Method (DSDM) that recommends

prioritization of requirements using the MoSCoW technique.
MoSCoW
• Under MoSCoW technique, the requirements are prioritized based on:

• Must (Requirements are mandatory)
The requirements that are critical and must be applied to a product as a matter of priority. Even if one of them is
not taken into account, the release is considered to be unfulfilled.
• Should (Requirements are highly desirable)

Requirements important but not critical for the release. Such requirements are not very sensitive to time.
• Could (Requirements are nice to have)

Desirable but not mandatory requirements for your release. These are usually low-cost improvements for the
product.
• Won’t (Requirements should not work at this point in time)

These are considered the least critical or may not correspond to the product strategy at all. They can be ignored
and be revised for future releases.
MoSCoW
While planning the requirements within any given timebox.

First, try to put in a few MUSTs, then, add on a few SHOULDs & COULDs,
Sometimes, The team cannot complete all the requirements within the timebox.
MoSCoW
KANO Model
KANO Model
Developed by Professor Noriaki Kano.

KANO strives to fulfil requirements & ensure customer satisfaction.
KANO Model
The requirements are prioritized based on Basic Needs, Performance

Needs, and Excitement Needs.
KANO Model
KANO Model
• The four categories of the Kano Model are as follows:

▪ Thresholds or Must Have:
These features must be present in the product for it to be successful.
▪ Linear or performance requirements

These features are linearly correlated to the customer satisfaction. More number of features leads to higher customer
satisfaction.
▪ Exciters and Delighters

These features provide great satisfaction (Premium price). Lack of these features will not decrease customer satisfaction
below neutral.
▪ Indifferent
These features are least important to the customer. They will return or add no business value.
KANO Model
KANO Model
KANO Model
KANO Model
KANO Model
KANO Model
KANO Model
Relative Weight
Relative Weight
Created by Karl Wiegers.

Select the features that will provide the highest benefits after adjustment for costs, risks, and
penalties. Relative Weighting helps you to arrive at an unbiased numerical value.
‫ مما يساعدك الوزن‬،)‫) بعد تعديل التكاليف والمخاطر والجزاءات (الغرامات‬Value( ‫يتم تحديد الميزات التي ستوفر أعلى‬
.‫) على الوصول إل قيمة عددية غير منحازة‬Relative Weight( ‫النسبي‬
Relative Weight
Key aspects:
• A feature's priority is directly proportional to the value it provides, and
inversely proportional to its cost and the technical risk associated with its
implementation.
• Each category uses a scale of 1-9
• Benefits reflect the value a feature will provide, while penalties reflect the
negative effect a customer will experience if the feature is not included.
Risks reflect the challenges of the implementing the feature, and costs reflect the actual cost of
implementing the feature.
Relative Weight
Relative Weight
Relative Weight
Relative Weight
Total Value = (Relative Benefit * Relative Benefit Weight) + (Relative Penalty * Relative Penalty Weight)
For example: (5 * 2) +(3 * 1) = 13
Relative Weight
Relative Weight
Value % = ( (Total Value) / (Sum of Total Value) ) * 100

For example: (13 / 154) * 100 = 8.4%
Relative Weight
Relative Weight
Relative Weight
Value Percentage
Priority =
( (Cost Percentage * Cost Weight) + (Risk Percentage * Risk Weight) )
Prioritization
• The product owner should continuously

assess the product backlog & prioritize
the requirement based on their
customer-value.
• Determining customer-value involves

activities such as:
– Collaborating with customers,
– Creating focus groups, and
– Reducing technical debt.
Which addresses quality and improves

delivery throughout.
Prioritization & Reprioritization
Q ue sti o ns
‫األسئلة‬
‫‪B r e ak‬‬
‫إستراحة‬
T HAN K S
ً‫شكرا‬

Value-Driven Delivery

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Value-Driven Delivery

Uploaded by

Copyright:

Available Formats

PMI Agile Certified Practitioner

Ahmed Yousry Abdelaziz

Introduction: About the PMI-ACP® Exam Chapter 4: Team Performance

• By the end of this domain, you will understand:

Deliver valuable results by producing high-value increments for review,

• Define Positive Value ‫• تحديد القيمة اإليجابية‬

• Define Positive Value ‫• تحديد القيمة اإليجابية‬

• Define Positive Value ‫• تحديد القيمة اإليجابية‬

• Avoid Potential Downsides ‫تجنب السلبیات المحتملة‬

• Avoid Potential Downsides ‫تجنب السلبیات المحتملة‬

• Avoid Potential Downsides ‫تجنب السلبیات المحتملة‬

• Prioritization ‫• تحدید األولویات‬

• Prioritization ‫• تحدید األولویات‬

• Prioritization ‫• تحدید األولویات‬

• Incremental Development ‫• التطوير التزايدي‬

• Incremental Development ‫• التطوير التزايدي‬

• Incremental Development ‫• التطوير التزايدي‬

• Incremental Development ‫• التطوير التزايدي‬

• Incremental Development ‫• التطوير التزايدي‬

But we don’t want a thousand features.

Innovation is not about saying ‘yes’ to everything.

A measure of benefit created through delivery of goods or services.

Value is NOT always related to monetary benefits, significant increase

All projects require forecasting such as:

The most Agile organization require forecasts.

Product Owner (PO) is responsible for maximizing the project value;

Time Value of Money is a key concept to be considered while forecasting

Project Selection Models

Non-Numeric Models Numeric Models

• The Non-numeric models has the following types:

• The numeric models has the following types:

• Benefit Measurement Methods (Comparative Approach)

• Constrained Optimization Methods (Math. Approach)

• Economic Models: Present Value (PV)

• Economic Models: Present Value (PV)

▪ Which one is a better option?

The correct answer is: Project A

• There are two projects from which to choose:

• Which one should the organization select?

The correct answer is: Project A

Compares (the expected costs)* of the project

THE PROJECT WITH THE GREATEST (BCR) IS SELECTED.

• A Benefit Cost Ratio (BCR) of greater than (1) means:

• A Benefit Cost Ratio (BCR) of less than (1) means

• A Benefit Cost Ratio (BCR) of (1) means

Minimal Viable Products

The key purpose of prioritization is to identify the high value features

• Prioritization can helps to:

▪ Determines the low priority or non-value adding tasks to avoid working on

Determining Customer-Value involves activities such as Collaborating

The following aspects must be factored:

• Business Value & ROI

There are three techniques that can be applied within Agile:

Dynamic Systems Development Method (DSDM) that recommends

• Under MoSCoW technique, the requirements are prioritized based on:

• Should (Requirements are highly desirable)

• Could (Requirements are nice to have)

• Won’t (Requirements should not work at this point in time)

While planning the requirements within any given timebox.

Developed by Professor Noriaki Kano.

The requirements are prioritized based on Basic Needs, Performance

• The four categories of the Kano Model are as follows:

▪ Linear or performance requirements