PMI – ACP

2 - Value-Driven Delivery
February 20, 2016 1
 Agenda
1. Value & Prioritization
2. Assessing Value
3. Planning Value
4. Delivering Value
5. Confirming Value
6. Tracking and Reporting Value
7. Summary
8. Q&A Session

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Value & Prioritization

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Agile Approach

Envision

High Level
Plan Build Build Build

Design Test Design Test Design Test

Plan Deploy Plan Deploy Plan Deploy

Release

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 Agile Approach

Ø Value driven - early and continuous delivery of value

Ø Focus on people and interactions
Ø Cross functional Self organizing teams
Ø Agility is everyone’s Responsibility
Ø Embrace changes even late in development
Ø Working software as the primary measure of progress

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Value

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Value

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Value

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Prioritization

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Value-Based Prioritization

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Value-Based Prioritization

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Prioritization by Risk and Value

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Financial Prioritization

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Financial Prioritization

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Prioritization by Revenue Sources

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Assessing Value

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Economic Models

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Economic Models

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Economic Models

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Customer Valued Prioritization

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Minimally Marketable Feature (MMF)

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Value Stream Mapping Tools

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Value Based Analysis

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Comparison between Value Stream Mapping & Process Mapping

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Planning Value

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 Planning Value – Six Levels of Planning

Organization focus
• Strategy: Business goals and roadmaps
agreed by the Executive Leadership
• Portfolio: Selection of the products that
will best implement the vision
• Product: Looking and planning for the
evolution of released system
Team focus
• Release: Features of each release that
support the Product plan
• Iteration: Tasks needed to transform a
feature request into working, tested
software
• Daily: Daily Scrum and work activities

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 Planning Value – Product Backlog, Release, Sprint

Product Road Map

Ø Visual overview of product’s releases and its main components
Ø Provides a quick view of primary release points and intended
functionality

Product Backlog
Ø Contains all user stories, themes, and epics.
Ø Product owner prioritizes features, epics and stories on their value
Ø If something is not in the product backlog, it is not in the product

Release
Ø Releases are used to support product roadmaps
Ø Product owner selects the items from the backlog that meet the goals
of a release.

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 Planning Value – Value Based Prioritization

Ø Valued based prioritization is the one of the core practices in

agile planning
Ø Features are prioritized on the basis of business value, risk and
dependencies.
Ø Some of the prioritization techniques used:
Ø MoSCoW prioritization: Requirements are prioritized based on
Must, Should, Could, and Won’t.
Ø Kano Analysis: Threshold, Linear, Exciters/Delighters,
Indifferent
Ø Relative prioritization: Each feature is prioritized based on its
relative weighting for Benefits, Penalties, Costs, and Risk
Ø Minimal Marketable Features: Smallest set of functionality that
provides value to the market

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Kano’s Model

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Kano’s Model

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 Planning Value – User Stories

Ø A lightweight mechanism to quickly capture requirements

Ø 3Cs: Card, Conversation and Confirmation
Ø Acts as an agreement between customers and development team
Ø Every requirement is a user story
Ø Every story, including technical stories, has a value
Ø Common structure of a user story
Ø Multiple levels - Features, Epics & Stories

As a <user type>
I <want to/need, etc> goal
So that <value>

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 Planning Value – Managing Risks

Traditional Risk Management Approach

Ø Risk identification, analysis and planning is largely done at the
during planning
Ø Responsibility of risk responses may lie on different individuals
Ø One responses are planned implementation is more often than not
forgotten

Quantitative Qualitative Monitor

Identify Plan Risk
Risk Risk and Control
Risks Responses
Analysis Analysis Risks

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Planning Value – Managing Risks

Agile Risk Management Approach

Review
(@ Retrospective)

Identify
Respond
(@ Daily Scrum; Retrospective;
(Avoid, Mitigate, Transfer,
Requirement Workshop; Sprint
Accept)
Planning; Sprint Review)

Assess
(Likelihood, impact, Response)

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 Planning Value – Managing Risks

Ø In Agile, risks are considered as anti value

Ø The risk management process is repeated every iteration
Ø The four steps in risk management cycle are:
Ø Risk Identification
Ø Risk Assessment
Ø Risk Response
Ø Risk Review
Ø The product backlog is continually reviewed and adjusted for
the risks
Ø Risk based spikes are planned for high value risks

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Delivering Value

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 Delivering Value - Timeboxing

Ø Student syndrome: a person will only start to apply themselves to an

assignment at the last possible moment before its deadline
Ø Parkinson’s law: work expands so as to fill the time available for its completion
Ø Timeboxing is setting a fixed time limit to activities
Ø If something cannot be accomplished in a timeboxed period, it is deferred to
the next period
Ø Allows velocity to be determined between iterations and sprints
Ø Applies everything: Scrums, Sprint planning, Sprints and iterations, risk spikes

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 Delivering Value - Task Board

Ø An "information radiator" -
ensures efficient diffusion of
information
Ø Can be drawn on a
whiteboard or even a section
of wall
Ø Makes iteration backlog visible
Ø Serves as a focal point for the
daily meeting
Ø Story cards can be quickly
and easily moved to update
status

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 Delivering Value - Limit WIP

Ø WIP (work in progress) also known as “work in

process”
Ø Includes work that has been started but not
completed yet
Ø Represents money spent with no return
Ø Hides process bottlenecks that slow the processes
Ø Represents risk in form of potential risk
Ø Agile processes aim to Limit and optimize WIP
Ø Optimal WIP makes processes effecient

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 Delivering Value - Quality

Ø Agile embeds quality throughout the project

lifecycle
Ø Quality is “built in” in agile approach
Ø Pair programming
Ø Test Driven Development / Test-First Development
Ø Acceptance Test Driven Development
Ø Collaborative definition of done
Ø Continuous integration

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 Delivering Value – Continuous Improvement

Ø Daily standup
Ø Sprint demos
Ø Retrospectives
Ø Highest value on quality
Ø Continuous Integration
Ø Process Improvement

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Confirming Value

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Confirming Value - Communication

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 Confirming Value - Communication

Ø Face to face communication

Ø Information Radiators vs Information Refrigerators
Ø Osmotic communication
Ø Collocated Teams
Ø Commons and Caves

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Agile Communication - Information Radiators

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 Confirming Value

Ø Customer-valued prioritization
Ø Feedback
Ø Prototypes
Ø Simulation
Ø Demonstration
Ø Evaluation

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Tracking and Reporting Value

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 Tracking and reporting

Ø Task or Kanban boards

Ø Burn down, Burn down Charts
Ø Cumulative flow diagrams (CFDs)
Ø Team velocity measurement
Ø Risk management and Risk burn down graphs
Ø Earned value management for agile projects

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Tracking Value– Reporting Progress

Burndown Chart
Cumulative Flow Diagram

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Tracking Value– Reporting Risks

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Summary

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 Summary

Ø Agile focuses on delivering Value on Projects with rapidly

changing and intangible requirements
Ø Lays more value people and interactions
Ø Uses light weight practices and artifacts to reduce waste
Ø Self organizing team of motivated individuals
Ø Focus on face to face and direct communication
Ø Continuous collaboration between business and development

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