Chapter-09(Agile Value)

Chapter-10(Agile Risk Management)

Chapter-11(Agile People Skills)

 Presented by :
Sharanpreet Kaur (A00135993)
Mandeep Kaur(A00149963)
Amandeep Singh(A00149926)
Yashpal Singh(A00149937)
Shivam (A00150031)

 Instructor:
Dr. Shabbar Hussain
  Chapter-09
Agile Value:
Agile value refers to the principles and beliefs that guide agile methodologies,
such as the Agile Manifesto. These values prioritize individuals and interactions,
working software, customer collaboration, and responding to change over rigid
processes and extensive documentation.
 For example: instead of following a strict plan, agile teams value adapting to
customer needs and feedback throughout the development process.

 Calculating Value:
Calculating value involves assessing the benefits and potential return on
investment (ROI) of a project or feature. It helps determine whether a particular
task or requirement is worth pursuing.
 For instance: a product manager may calculate the value of implementing a
new feature by estimating the potential increase in customer satisfaction and
the corresponding impact on revenue.
 Plan Value:

Planning value means incorporating value considerations into the project planning
process. It involves identifying and prioritizing the features or tasks that will deliver
the most value to the customer or organization.
 For example: a project team may plan to work on high-value features early on to
ensure they are delivered sooner and start generating benefits.

Adaptability and Value: This concept emphasizes the importance of being

adaptable in order to maximize the delivery of value. Agile methodologies recognize
that customer needs and market conditions can change, so it's crucial to adapt plans
and strategies accordingly.
 For instance: if a competitor releases a similar product, an agile team may need to
adjust its priorities and quickly develop a differentiating feature to maintain value for
customers.
 Adaptive Planning:

Adaptive planning is an approach that embraces change and adjusts plans as new
information becomes available. Instead of following a rigid, fixed plan, agile teams
regularly reassess and adapt their plans to reflect changing circumstances and
priorities.
 For example: during a project's development, an agile team may discover a more
efficient way to deliver a feature and modify their plan accordingly to optimize value
delivery.
Agile versus Traditional Changes: This topic explores the differences between
agile and traditional (often referred to as waterfall) approaches to change
management. Agile embraces iterative and incremental changes, delivering value in
smaller increments and incorporating feedback throughout the process. Traditional
approaches, on the other hand, tend to follow a linear and sequential process, where
changes are implemented in a fixed order. Agile's iterative nature allows for more
flexibility and the ability to adapt based on feedback, ultimately delivering value
more efficiently.
 Minimally Marketable Features:
Minimally Marketable Features: Minimally Marketable Features (MMFs) are small,
self-contained units of functionality that deliver value to the customer. They represent
the smallest set of features that can be released independently and still provide
meaningful value.
 For instance: in the development of an e-commerce website, an MMF could be the
ability to add products to a shopping cart and proceed to checkout. This feature,
when completed, can be released to customers, delivering value even if other
planned features are not yet implemented.
Tailoring and Value: Tailoring refers to customizing the agile methodology to suit
the specific needs and context of a project or organization. When tailoring agile
practices, it's essential to consider the value that each practice brings and adapt
accordingly.
 For example: if a particular agile practice doesn't align with the project's objectives
or customer needs, it can be modified or omitted to maximize value delivery.
 Deliver Value:

Delivering value means consistently providing features, services, or products that meet
or exceed customer expectations. It involves delivering tangible results rather than just
working on tasks or activities.
 For example: an agile development team delivers value by completing and releasing
a software feature that enhances the user experience and solves a customer pain point.

Using Software or Task Boards to Deliver Value: Software or task boards are visual
tools used to track and manage work in agile projects. They help teams visualize the
progress of tasks, identify bottlenecks, and ensure the timely delivery of value.
 For example: a team may use a digital task board with columns representing
different stages of work, such as "To Do," "In Progress," and "Done." Each task or
user story is represented by a card that can be moved across the board as work
progresses. This allows team members and stakeholders to see the status of work
items and ensure that value is being delivered efficiently.
 Analyzing and Determining Value:

Analyzing and determining value involves assessing the potential benefits, impact, and
worth of a particular feature, project, or initiative. It requires analyzing various factors
to understand the value it brings to stakeholders, customers, and the overall
organization.
 Example: In an agile software development project, the team analyzes and
determines the value of a new feature by considering factors such as customer needs,
market demand, and business goals. They evaluate the potential impact on user
experience, revenue generation, or competitive advantage. By analyzing and
determining the value, they can make informed decisions about which features to
prioritize and invest resources in.
 Value prioritization:

Value prioritization involves ordering or ranking items, features, or tasks based on

their perceived value. It helps ensure that the most valuable and impactful items are
given higher priority, enabling efficient allocation of resources and focus.

 Example: In a product backlog, an agile team prioritizes user stories based on

their value to the customers. They consider factors such as customer feedback,
business value, and strategic goals. The team assigns higher priority to features
that provide significant value to the customers or address critical needs. This
allows them to deliver the most valuable features early in the development
process.
There are several techniques that are used to prioritize requirements from the
customer’s perception and a discussion follows. These techniques are referred to
as prioritization schemes:

1. Monopoly Money: This scheme is played somewhat like the Monopoly game in that the customer
is asked to divide the money up among the product’s features. During this process, the high-priority
items are Griffiths, M. (2012).
Analyzing and Determining Value
Item Description: Feature #1 ($)
Feature #2 ($)
Benefit 15,000 8,000
Development cost –5,000 –2,000
Delivery cost –1,000 –500
Total value 9,000 5,500
Agile Value • 109discovered.
• The monopoly money should be limited to high-value product features to ensure effectiveness in the
prioritization game.
2. 100-Point Model: This prioritization scheme is based upon use cases. Stakeholders are given 100
points to vote for the high-priority requirements. The higher the points for a feature are, the higher the
priority level.

3. Moscow Prioritization Scheme: This prioritization scheme is based on the letters in the name of the
scheme where: (Note that the letter O is not used.)

• M stands for Must have

−− Priority 1—Very High
• S stands for Should have
−− Priority 2—High
• C stands for Could have
−− Priority 3—Moderate
• W stands for Would like to have, but not now
−− Priority 4—Low

The meanings of these letters are straightforward and represent the priority levels of the
requirements.
 Confirm Value:

Confirming value involves validating and verifying that the delivered product or feature
indeed provides the intended value and meets the expectations of stakeholders and
customers. It involves obtaining feedback and conducting assessments to ensure value
realization.
 Example: After completing a sprint, an agile team holds a demo or presentation to
showcase the developed features to stakeholders. They gather feedback from
stakeholders, such as users or product owners, to confirm if the delivered features
meet their expectations and provide the desired value. Based on the feedback, the
team can make necessary adjustments or improvements to enhance value delivery in
subsequent iterations.

Track and Report Value: Tracking and reporting value involves monitoring and
documenting the value delivered by a project, product, or initiative. It includes
capturing relevant metrics, progress, and outcomes to demonstrate the value realized.
 Example:
An agile team tracks and reports the value delivered by regularly updating key
metrics, such as customer satisfaction, revenue growth, or user adoption rates. They
generate reports or dashboards that showcase the progress made and the value
achieved. This helps stakeholders, such as product owners or management,
understand the impact of the project and make informed decisions based on the
value delivered.

 By analyzing and determining value, prioritizing based on value, confirming

value through feedback, and tracking and reporting value, agile teams can ensure
that they are delivering valuable outcomes that align with stakeholder
expectations and business objectives.
 Chapter-10

Agile Risk Management: Agile risk management involves actively identifying,

analyzing, and addressing risks within an agile project. It means being aware of
potential challenges or uncertainties that could hinder the successful completion
of a project and taking proactive measures to mitigate those risks. Agile teams
prioritize risk management throughout the project lifecycle to ensure smooth
progress and value delivery.
 Example: In an agile software development project, a team identifies a risk that
the chosen technology may not meet performance requirements. To manage this
risk, they decide to conduct frequent performance tests and iterations, allowing
them to identify and address any performance issues early on. By incorporating
risk management into their agile approach, they are better equipped to handle
potential setbacks.
 Mitigating Risks with Agile Methods:

Mitigating risks with agile methods means using agile practices and principles to
actively address and reduce potential risks. Agile teams aim to identify risks early,
respond quickly, and adapt their plans accordingly to minimize their impact on the
project. By embracing change and continuous improvement, agile methods provide
a framework for effectively managing risks.
 Example: An agile development team working on a web application project
identifies a risk that user requirements may change during development, leading
to scope creep. To mitigate this risk, they adopt agile practices such as regular
customer collaboration and frequent feedback loops. This allows them to quickly
respond to changing requirements, make necessary adjustments, and prevent
scope creep, thereby reducing the risk of project delays or dissatisfaction.
Following is a list of ways that risk mitigation occurs:

 The flexibility of agile methods automatically reduces risk in the business environment. Risk
is mitigated because agile methods are flexible with adding or changing user requirements at
any time in the project.
 Regular feedback reduces risk-related expectations. As a result of the iterative nature of agile
methods, there is adequate time to get feedback and establish expectations during the life cycle
of the project.
 Agile team ownership supports reduced estimation risk. When the agile team takes
responsibility for estimates of backlog items, this leads to increased accuracy of the estimates
that they provide which in turn results in the timely delivery of the product.
 Transparency is a risk reducer of undetected risk. As a result of transparency, risks are always
detected and addressed as early as possible. This leads to better risk management and
mitigation.
 Iterative delivery causes a reduction in investment-related risk. As value is being continuously
delivered through the iterations, investment risk is automatically reduced for the end customer
How risks are identified in terms of impact, probability, and
severity levels

• Probability × Impact = Severity

Risk Type Impact (0–3) Probability (0–3) Severity = Impact

× Probability
1. Java version compatibility Technical 3 2 6
2. Inadequate resources Operational 3 2 6
3. Scope changes Schedule 3 2 6
4. Vendor dispute Financial 2 1 2
5. Priority conflicts Operational 2 1 2
 Risk Management for Agile versus Traditional Project Management

Risk management in agile and traditional project management approaches differs in their
strategies and emphasis. Agile risk management is more iterative, adaptive, and
responsive to change, while traditional risk management follows a more structured and
sequential approach.
 Example: In an agile project, a team identifies a risk related to resource availability.
They decide to use a cross-functional team approach, where team members possess
multiple skills, to mitigate this risk. By having a flexible team structure, they can
dynamically allocate resources and adapt to changing needs throughout the project. In
contrast, in traditional project management, risk management might involve creating a
detailed risk management plan upfront, identifying risks early, and then executing
predetermined mitigation strategies. Overall, agile risk management focuses on
continuous risk assessment and mitigation, embracing change, and responding quickly
to uncertainties, while traditional risk management tends to rely on more pre-planned
strategies and sequential execution.
Prioritizing based on ROI(return on investment )
 Work on the agile project is prioritized based on business priority and risk levels. Risky
features get addressed as quickly as possible based on the return on investment (ROI) for each
item in the backlog. Opportunities are addressed as changes that add value for the customer
 To begin, most projects are undertaken because of the ROI on the overall project. What we
need to do is to divide the ROI across the product’s overall feature list
 Once we have determined the ROI per feature, we now need to calculate the expected
monetary value (EMV) of each risk. According to the PMBOK Guide (2013),* the EMV is a
statistically based concept that determines average results of a future event that include a
scenario that has a particular level of uncertainty. We observe the following when calculating
EMV for risks and opportunities:
 EMV results for opportunities are positive values.
 EMV results for risks are negative values.
 When calculating the EMV for an entire project, the values of all possible outcomes are
multiplied by the probability of occurrence and then adding the products of the values
together. For example: Expected Monetary Value (EMV) = Risk Impact ($) × Risk Probability
(%)
 Prioritized Product Backlog with ROI per Feature

Feature Priority ROI ($)

Works on the MAC 1 10,000

Works on Windows 1 8,000

Supports 5,000+ users 1 25,000

Java based 2 7,000

Citrix 2 4,000

Portable to the 3 3,000

mainframe
 Expected Monetary Value (EMV) Calculation

Feature Priority ROI ($ Risk Impact ($) Risk EMV ($) = Risk
(How much Probability (%) Impact ($) ×
does it cost to Risk
mitigate this Probability
risk?) (%)
Works on the 1 10,000 5,000 75 3,750
MAC
Works on 1 8,000 4,000 50 2,000
Windows
Supports 5,000+ 1 25,000 20,000 45 9,000
users
 Risk-Adjusted Backlog (Requirements and Risk Responses)

Prioritized Risks ($) Prioritized Requirements Risk Adjusted Backlog

Value (ROI; $) ($)
Risk#1-9,000 Requirement#1-25,000 Requirement#1-(25,000)
Risk#2-3,750 Requirement#2-10,000 Requirement#2-(10,000)
Risk#3-2,000 Requirement#3-80,000 Risk Action#1-(9,000)
_ _ Requirement#3-(8,000)
_ _ Risk#1-(3,750)
_ _ Risk#3-(2,000)
_ _ _
_ _ _

_ _ _
 Chapter-11
Agile People Skills: Agile People Skills refer to the interpersonal skills and competencies that
are essential for individuals working in an agile environment. The agile team (Product Owner,
developers, and agile leader) must learn to use effective soft skills when dealing with others.

Addressing Leading Embodyin

Utilizing Conductin
Negotiatin and Embracing and g the PMI
Listening emotional g effective
g resolving diversity managing Code of
intelligence meetings
conflict effectively Ethics
 LISTENING

Listening is a critical soft skill in the context of agile methodologies. Agile teams rely
heavily on effective communication and collaboration, making listening an essential
component of successful agile practices. Agile team members should practice active and
empathetic listening, paying attention not only to words but also to non-verbal cues.
They should ask clarifying questions, summarize and paraphrase information to ensure
understanding, and provide constructive feedback. By mastering the art of listening, agile
team members can foster strong relationships, promote empathy, and facilitate effective
teamwork, leading to improved project outcomes.
• As an agile soft skills, listening has the following important components:
 Active Listening: Active listening involves giving full attention to the speaker and
focusing on understanding their message. It requires concentration, avoiding
distractions, and demonstrating genuine interest in what others are saying. Agile team
members should actively engage in listening to capture important information,
perspectives, and insights.
 Empathetic Listening:
Empathetic listening involves not only understanding the
words being spoken but also considering the speaker's
emotions, intentions, and underlying needs. Agile team
members should strive to empathize with the speaker,
seeking to understand their viewpoint and demonstrating
empathy through their responses and actions.

 Non-Verbal Communication: Listening goes beyond

verbal communication. Agile team members should pay
attention to non-verbal cues such as body language,
facial expressions, and tone of voice. Non-verbal
signals can provide valuable insights into the speaker's
emotions, level of engagement, and overall message.
  NEGOTIATING
The agile environment requires negotiation by all team members throughout the entire
project. It involves the process of reaching an agreement or resolving a conflict through
communication and compromise. In the context of agile methodologies, negotiating
skills are valuable for agile team members in various situations, such as defining project
scope, prioritizing tasks, resolving conflicts, and managing stakeholder expectations.
Here are some key points to consider when it comes to negotiating:
• Preparation: Successful negotiations start with thorough preparation. Before entering
a negotiation, it's important to understand your goals, interests, and potential trade-
offs. Research the other party's position, needs, and concerns to anticipate their
perspective and possible areas of compromise
• Flexibility and Adaptability: Negotiations often involve give-and-take. Be open to
adjusting your position and exploring alternative solutions. Remain adaptable
throughout the negotiation process, recognizing that priorities and
circumstances may change.
• Win-Win Mindset:  

Aim for a win-win outcome where both parties feel

satisfied with the agreement. Instead of focusing
solely on your own interests, explore creative
solutions that address the needs of all involved.
Collaborative problem-solving and brainstorming can
lead to innovative outcomes that benefit everyone.

• Problem-Solving Orientation: Approach

negotiations as an opportunity to solve problems
rather than engaging in a competitive battle. Focus
on underlying interests and shared goals to find
creative solutions that address the needs of both
parties.
 ADDRESSING AND RESOLVING CONFLICT
Addressing and resolving conflicts is an essential skill for individuals working in agile
environments, where collaboration and effective teamwork are crucial for success.
Conflicts can arise due to differing opinions, competing priorities, or misunderstandings.
 As an agile soft skills, Addressing and resolving conflict has the following
important points:
1. Recognize and Acknowledge the Conflict: The first step is to recognize and
acknowledge that a conflict exists. Avoiding or ignoring conflicts can lead to further
escalation. Acknowledge the emotions and concerns of all parties involved.
2. Identify the Underlying Issues: Dive deeper to identify the root causes of the
conflict. Often, conflicts are symptoms of deeper issues such as miscommunication,
diverging goals, or resource constraints. Seek to understand the underlying needs and
interests of all parties involved.
3. Collaborative Problem-Solving:
Encourage a problem-solving mindset rather than a confrontational approach.
Involve all parties in brainstorming solutions and encourage them to contribute
their ideas. Look for win-win outcomes where everyone's needs are addressed to
the extent possible.
4. Find Common Ground: Identify areas of agreement and shared objectives.
Focusing on common ground can help build understanding and trust between
conflicting parties. Emphasize the shared goals and interests to find a resolution
that aligns with the broader objectives.
5. Focus on Continuous Improvement: Conflict resolution is an opportunity for
growth and improvement. Encourage a culture of learning from conflicts and
identifying preventive measures to avoid similar conflicts in the future. Reflect on
the resolution process and adjust if necessary.
 UTILIZING EMOTIONAL INTELLIGENCE

Agile team members must understand that it requires a certain degree of flexibility
when dealing with uncertainty and unknown circumstances. It must be understood
that in such situations, a healthy level of emotional intelligence, which is referred to
as the capability to understand, evaluate, and affect the emotional well-being of
others, including ourselves, is necessary.
There are several facets to emotional intelligence:
• Self
• Self-management
−− Self-control
−− Flexibility
−− Motivation and ambition
−− Carefulness
 • Self-awareness
−− Sureness in self
−− Emotional self-awareness
−− Correct self-assessment

• Others
• Social skills
−− Self-control
−− Motivating leadership
−− Developing other people
−− Alliances and teamwork
 • Social awareness
−− Compassion
−− Organizational consciousness
−− Understanding of surroundings
 CONDUCTING EFFECTIVE MEETINGS
Well-structured and productive meetings contribute to efficient communication,
alignment, and the achievement of project goals. In order to conduct effective
meetings, the facilitator should focus on the
following set of factors:
• Meeting Objectives: What is the purpose of the meeting? Why are we
having this meeting? What do we hope to accomplish? Objectives
will keep the meeting on track.
• Meeting Rules: All participants should be made aware of the rules
prior to the start of the meeting. The facilitator must enforce rules in
order to meet objectives.
• Meeting Time: A timekeeper (preferably the facilitator) must keep the meeting
within the scheduled time. The meeting duration should be established beforehand.
• Meeting Assistance:
The facilitator should ensure that all participants are allowed to provide feedback.
The focus should always be kept on the meeting objective and deviations should not
be permitted.
  EMBRACING DIVERSITY
Embracing diversity is a fundamental principle in agile environments. Agile methodologies recognize
the value of diverse perspectives, backgrounds, and experiences in fostering creativity, innovation, and
high-performing teams.

 Key points:

1. Inclusive Culture: Foster an inclusive culture that values and respects individuals from diverse
backgrounds. Create an environment where everyone feels safe, valued, and empowered to contribute
their unique perspectives. Encourage open dialogue, active listening, and empathy.

2. Diverse Team Composition: Assemble teams with diverse skill sets, backgrounds, and
experiences. Embrace diversity in terms of gender, age, ethnicity, cultural backgrounds, and cognitive
styles. A diverse team brings different ideas, problem-solving approaches, and insights, leading to more
robust solutions.
4. Equity and Fairness:
Ensure fairness and equal opportunities for all team members. Address biases and
stereotypes that may affect decision-making and resource allocation. Provide equal
access to growth opportunities, recognition, and rewards based on merit and
contribution.
5. Effective Communication: Adapt communication styles to accommodate
diverse perspectives. Encourage clarity, respect, and active listening during
discussions to ensure that everyone's voice is heard. Foster an environment where
individuals feel comfortable expressing their viewpoints without fear of judgment.
6. Collaborative Problem-Solving: Leverage the diversity within the team to
promote collaborative problem-solving. Encourage different perspectives and
engage in constructive debates to generate innovative ideas and solutions. Embrace
constructive conflict that challenges assumptions and leads to better outcomes.
  LEADING AND MANAGING EFFECTIVELY
Leading and managing effectively refers to the skills and practices that enable individuals in
leadership roles to guide and support their teams to achieve organizational goals. Effective
leadership involves setting a clear direction, fostering a positive work environment,
empowering team members, and facilitating collaboration and growth.
Key Points:
Setting a Clear Direction: Effective leaders establish a clear vision, mission, and
goals for their teams. They communicate this direction to team members, ensuring
everyone understands the purpose and objectives of their work. By providing
clarity, leaders help team members align their efforts towards a common goal.
Providing Guidance and Support: Leaders support their team members by
providing guidance, feedback, and resources. They offer clarity on expectations,
provide constructive feedback to enhance performance, and mentor individuals to
help them grow professionally. They create an environment where team members
feel supported in their roles.
 Empowering Team Members:
Effective leaders empower their team members by delegating authority and
decision-making power. They trust their team members' expertise and allow them
to take ownership of their work. Empowering team members fosters a sense of
ownership and accountability, leading to increased motivation and productivity.
Building Relationships and Collaboration: Leaders focus on building positive
relationships within the team and with stakeholders. They foster a collaborative
and inclusive work environment where individuals feel valued and respected. By
promoting open communication and teamwork, leaders encourage the exchange
of ideas, problem-solving, and innovation.
Managing Conflict: Conflict is inevitable in any team. Effective leaders address
and resolve conflicts in a constructive manner. They encourage open dialogue,
actively listen to different perspectives, and facilitate discussions to find win-win
solutions. By managing conflicts effectively, leaders promote healthy team
dynamics and maintain a positive work environment.
  EMBODYING THE PMI CODE OF ETHICS
The PMI has established a code of ethics and professional behavior as it pertains to
relationships with others on agile projects. The four main areas are responsibility,
respect, fairness, and honesty. Those who are project management professionals
(PMPs) or PMs in general are already aware of how important ethical behavior is on
projects and during interactions with stakeholders.
The code of ethics boils down to:

 Be responsible:
• Make decisions based on what is best for the company.
• Protect proprietary information.
• Report unethical behavior and violations.
Show respect:
• Be cooperative.
• Respect cultural differences.
• Show good faith when negotiating.
• Don’t avoid conflict; deal with it head-on.
• Don’t use your position to manipulate others.

Be fair:
• Don’t accept bribery and do act impartially.
• Be aware and fully disclose conflicts of interests.
• No discrimination.
• Don’t use your position for personal gain.
 Be honest:

• Understand the truth.

• Tell the truth in all communications.