AGILE

METHODOLOGIES
MANAGEMENT
 INDEX

TOPIC 1. Product management

1.1. INTRODUCTION ........................................................................................9

1.2. IDEATION BASED ON LISTENING TO CUSTOMERS ...........................10

1.2.1. Basics: What is active listening?

1.2.2. Client: Active listening in three steps

1.2.3. User. Buyer person

1.3. VISUAL THINKING...................................................................................15

1.4. MVP PROTOTYPING...............................................................................22

1.4.1. Basic concept: MVP

1.4.2. Definition of a cycle

1.4.3. Build - measure - learn

1.4.4. Prioritization matrix

1.5. PRODUCT MANAGER.............................................................................27

1.5.1. Basics: What is a product manager?

1.5.2. Product or service management

1.5.3. Product owner

1.5.4. Value Curve and RICE Matrix

1.6. UX/UI ........................................................................................................35

1.6.1. User experience

1.6.2. UX

1.6.3. UI
KEY IDEAS ........................................................................................................39

GLOSSARY .......................................................................................................41

BIBLIOGRAPHY ................................................................................................43

TOPIC 2. Lean startup

2.1. VISION......................................................................................................47
2.1.1. Basic concepts: Lean startup methodology

2.1.2. What is the product vision?

2.1.3. MVP

2.1.4. Responsibilit

2.1.5. Prioritization

2.1.6. Motivation

2.2. ADDRESS ................................................................................................55

2.2.1. Validate learning and waste

2.2.2. Design sprint

2.2.3. Managing by measuring

2.3. ACCELERATE..........................................................................................62
2.3.1. Feedback

KEY IDEAS ........................................................................................................71

GLOSSARY .......................................................................................................73

BIBLIOGRAPHY ................................................................................................75

TOPIC 3. Agile Management

3.1. AGILE FUNDAMENTALS.........................................................................79
3.1.1. Values of the agile methodology?

3.1.2. Work team. Processes and tools

3.1.3. Functional product, based on comprehensive documentation

 3.1.4. Collaboration with the client on contract negotiation

3.1.5. Response to change about following a plan

3.1.6. The 12 principles of the Agile Manifesto

3.1.7. Advantages

3.2. AGILE MANAGEMENT AND LEADERSHIP ............................................86

3.2.1. Scrum Method

3.2.2. Kanban Method

3.2.3. Extreme Programming Method (XP)

3.2.4. Crystal Clear Method

3.2.5. Dynamic Systems Development Method (DSDM)

3.2.6. Feature-based development method (FDD)

3.2.7. SAFe

3.2.8. Agile and the Waterfall model

3.2.9. Agile and the Scrum model

3.3. AGILE METRICS AND VALUE MANAGEMENT......................................94

3.3.1. Maturity Model

3.3.2. Metrics

KEY IDEAS ........................................................................................................99

GLOSSARY .....................................................................................................101

BIBLIOGRAPHY ..............................................................................................103
TOPIC 1
Product management
 Agile methodologies
Topic 1. Product management

OBJECTIVES
• Identify the characteristics of a better value proposition.

• Learn different visual thinking techniques.

• To know and identify aspects of the mind map or empathy map.

• Define the different roles present in the product phases.

• Understand the diversity of practices, frameworks and tools used for the creation and
development of a product or service.

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1.1. INTRODUCTION
Product Management, also known as "product management", consists of managing the
product's life cycle, including the detection of its need, its validation, its design, its
implementation, its release to production, its maintenance, its improvement, evolution and
growth, its integrations and, sometimes, its death. To be successful, it is necessary to know
how to integrate all the resources at hand: people, data, processes and information systems.

The standard life cycle of a product can be represented as follows:

PRODUCT SALES CYCLE

Introduction Growth Maturity Decline

SALES

TIME

Product Management is one of the most important factors in an organization, since it can
mark a before and after in terms of customer retention and loyalty. It explains the intention to
satisfy the consumer's need, as well as the related services, essential to enjoy the product
itself. Thus, it is a discipline that is designed to respond to the needs or desires of the
consumer.

Therefore, this practice brings together a series of elements that develop the aspects related
to utility and enjoyment that all consumers and users seek:
• Product definition.
• Design.
• Brand.
• User Experience (UX).
• Studies related to the product.

Each product has its own objectives and challenges, which requires a unique and
customized approach to product management. As Martin Eriksson1 explained, product
management is the intersection of business, user experience and technology.

1 https://www.mindtheproduct.com/what-exactly-is-a-product-manager/

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 Agile methodologies
Topic 1. Product management

© Martin Eriksson, 2011

1.2. IDEATION BASED ON LISTENING TO CUSTOMERS

1.2.1. BASIC CONCEPTS: WHAT IS ACTIVE LISTENING?
Knowing how to listen to customers is one of the pillars of any Agile project. "What is the reason
for companies to tell us their story?". The answer is simple, people want to be heard and above
all understood. One of the pillars of the Agile manifesto is that "individuals and their
interactions are above processes and tools".

People are a company's most valuable asset. Whatever the project, an agile methodology
puts in the forefront the ability to listen and understand, in the most direct collaboration
possible through the Product Owner, adapting the product to what is really needed. This
necessarily implies a deep understanding of the needs.

It is necessary to enhance the skills that allow answering questions such as: What does my
client need? and How can I offer it to him/her?

• Know your market.

• Practice active listening.

• Contribute knowledge.

• Ask effective questions to obtain valuable information.

• Offer real solutions to their demands.

A very common example is to ask the customer for an evaluation of the services being
offered and compare them with their total needs and technology gaps. This interaction serves
two purposes:

• Improve competitiveness.

• Identify the empathy map that can cover the full spectrum of customer needs.

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Listening is therefore the most sensitive point. It is often thought that within the agile
methodology it is not necessary to document the entire process, but the truth is that it is
essential to avoid the loss of information and to facilitate the backlog.

1.2.2. CUSTOMER: ACTIVE LISTENING IN THREE STEPS

1. Customer segmentation. It is as important to prepare the pitch as it is to prepare to
receive it. This is essential because, although customers in the same industry are similar,
each has unique needs and interests.

2. Identification of the customer's purpose. It is necessary to find the problem that the
client expects to solve and to detect his needs. Open-ended questions allow him to
express himself freely.

3. Identification of their frustrations. We must identify the risks or obstacles facing the
project. We must let the customer describe everything that bothers him when he tries to
solve his problem. This is what Agile calls pain points. It is also important to find the pain
points of potential customers, so a good practice is to talk about negative feedback and
how they handle it.

IMPORTANT

It is good to ask for feedback in order to facilitate communication, convey

understanding and clarify any possible doubts about the client's message.

Active listening creates a degree of empathy with the customer, from which we can learn about
their strengths and weaknesses, which better prepares us to be able to capture the
information in the empathy map. This is an excellent tool widely used in agile communities, which
allows us to clearly know what the customer wants and offer solutions to their needs.

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 Agile methodologies
Topic 1. Product management

Like other tools, the empathy map uses fundamental elements for its implementation. Its six
divisions represent what the customer does, sees, hears, thinks, feels and wants. In the
empathy map, usually in the form of a cross, the ideal customer is placed in the center, and
from there the divisions are drawn, as shown in the figure below.

Among its main functions are:

• Structuring in a clear and simple way the needs and desires of the leads, in order to
evaluate them more easily.

• Provide a better understanding of the buyer persona, detailed, direct and focused on
their real problems.

• To be a cost-effective tool to support needs analysis.

It is a tool that seeks to facilitate the process of gathering information about customers. It
involves segmenting them according to a series of common characteristics or attributes, such
as age, gender, employment status, interests, etc., that define different groups. At the end of
segmentation, the ideal is to have between one and three customer groups or segments.

The more information obtained, the easier it will be to describe each segment. This is usually
done on an Agile whiteboard and is completed with post-it notes that allow you to add, delete
or vary the amount of information provided. We know these processes as brain storming,
although in recent years the possibility of quickly creating empathy maps along functional
lines and collaboratively, through different platforms, or through a blank document that can
be shared in the cloud, is spreading.

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1.2.3. USER. BUYER PERSON
Juan is interested in Cryptofint, an online project that offers services and programs to teach young
managers how to invest in different areas of the economy through cryptocurrencies.

Cryptofint is about to launch a new product consisting of a three-month mentored online

course that teaches how to generate extra income from certain skills.

Juan is 38 years old and has lived in Barcelona for 15 years. He was born in Valencia and lived
in Madrid until he moved to Barcelona to study computer science, where he joined his company.
His job requires him to travel constantly around Europe and Southeast Asia, which has given him
the opportunity to get to know different company cultures. He is married and has a two-year-old
daughter.

His company generates high profits and he is happy to contribute his expertise in technology.
He is concerned about climate change, deforestation and recycling.

She lives under constant stress. The rush prevents him from spending as much time as he
would like with his family and friends, but he manages to find time to participate in social
events and support some charitable causes.

Creating user personas means describing fictitious characters that represent the types of
users who may be interested in the future product. In other words, it is guessing what the
ideal user would be like. User personas can include information such as age, gender,
education level, average income, life goals, common problems, spending habits, and so on.

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 Agile methodologies
Topic 1. Product management

SCHEME

What does the lead see?

The environment surrounding the potential customer and how he observes and
perceives the world is analyzed. Juan lives surrounded by comforts in a neighborhood
of residential houses.
Buys natural and organic food, supporting local commerce. Network with other parents
and friends from the university who live nearby. Receives offers about NGOs of which
he is a member, about travel and restaurants. She regularly watches social networks
and participates in environmental and economic forums, and sees how others are
growing personally, increasing their families and enjoying inner peace.
2. What do you listen to?
In this block we refer to all the information that reaches the lead through social
networks and other communications that can generate options.
Juan's friends tell him that they are tired of his day-to-day life and of not being able to
meet with him, but he makes the excuse that his boss asks him to make more of an
effort and asks him to travel abroad more.
His wife tells him that he is happy, but would like him to spend more time with his
daughter. He would like it too, since, besides, as he can see from the people he
follows on social networks, having time is wealth and seeking inner peace is
paramount.
3. What are your thoughts and feelings?
The general situation in which the lead is in is raised. It is based on demographic,
economic and social aspects to delve into their concerns and desires. From this
recognition it is also determined what the customer feels or perceives.
Juan is concerned that his daughter is growing up and that he is not around to share
his experiences, so he has decided to spend more time with her. He considers himself
a rich person, but lacks the courage to change jobs, as his main motivation is to be
able to support his family and parents. She tries to make all of them, especially her
daughter, aware of how important it is to take care of the environment.

4. What does it say and do?

It is assumed that there is consistency between what we assume about the lead and
the actions that reaffirm it.
She identifies with vegan trends. Makes time to attend events of organizations
dedicated to the care of the planet. He shows himself as a valuable person for the
company and his family in public, and considers himself a good father and partner.

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 5. What are your efforts?
It depicts the obstacles that the lead faces in his life: the barriers, worries and
frustrations he experiences.
Juan is afraid of being fired and not being able to face the future. He is angry with the
misuse of resources when it comes to travel, as they are very polluting. He would like
to be financially free to be able to dedicate more time to his purpose and travel in a
more sustainable way, but he feels that, for the moment, it is impossible, being tied to a
company.

6. What results do you expect?

Describes the possibilities of satisfaction that a customer can achieve once he/she
overcomes the obstacles.
Juan would like to be promoted to have more time, so he works harder than others. He
would like to have an extra source of benefits and achieve financial independence so
he can change jobs, but he is afraid because he has been in his job for many years
and may be promoted.

Once all the questions have been answered, our empathy map is complete. Now it is time to
analyze it. Success lies in how you imagine the needs and expectations of the perfect
customer and how you match the product to them, which is why the empathy map is such an
important tool.

Does our customer's product fit Juan?

With the empathy map we have made, we have shown that the three-month mentored online
course, which teaches how to generate extra income from certain skills, is definitely aimed at
people who want financial independence and have more time for their family activities, so the
product should have enough acceptance in the profile we are targeting.

1.3. VISUAL THINKING

BASIC CONCEPT: WHAT IS VISUAL THINKING?

Have you ever been forced to sit and watch a boring presentation?

The visual thinking tool is an attractive way of transferring the ability to discover, generate,
develop, express and share ideas in a quick and intuitive way, using basic figures, graphs,
connectors and containers. It is therefore a tool that consists of making diagrams that help us
to think and communicate our ideas through the use of drawings in combination with visual
forms such as icons, arrows and simple scripts.

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 Agile methodologies
Topic 1. Product management

We can see more and more tools such as mind maps, sketchnotes or storytelling in Agile
companies. It is important to note that drawing is innate in everyone. We have all drawn at
some point as children, even if we have abandoned the practice as adults. We all know how
to draw arrows, symbols and doodles. Why do we say this? Because there is no single way
of expressing ideas, and visual thinking is precisely the gateway to their demonstration. It is
above all the most authentic form of expression, so it is important to encourage spontaneity
and creativity.

1. Go-think-ask-question-ourselves

It consists of choosing an image or a theme and asking yourself three questions:

– What do you see?

– What do you think about what you see?

– What does this make you wonder? It is the most important question.

This activity helps to stimulate curiosity, enhances observation and helps to formulate
interpretations based on one's own thinking.

– What do you see?

– What do you think about what you see?

– What does this make you wonder?

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 2. Color - symbol - image

This technique polishes the understanding by reading, observing or listening to identify a

subject with a color, a symbol and a representation that captures the essence of what is
exposed, and from there create an image that represents it faithfully, by its color and
shape.

Look again at the previous image and answer.

– What color identifies you?

– What symbol would you give it?

– Which representation captures the essence of the exhibit?

Thinking visually is an ability that helps us in several facets. Visual thinking is applicable to
multiple fields related to innovation, both in the creative processes of the business field and
in those related to executive training.

• It makes it easier to remember the content of a piece of information.

• Knowledge is acquired through the use of the mind and hand.

• Facilitates the understanding of abstract concepts.

• Creates a sustainable learning process over time.

• Creates unity in the team, by having a better collective understanding.

• Accelerates the creation of solutions to problems collectively.

• Generates a good working environment.

• Use creativity to find unexpected solutions.

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 Agile methodologies
Topic 1. Product management

+ INFO Visual thinking means "tapping into an innate ability to discover

otherwise invisible ideas, develop them quickly and intuitively, and then
share them with others in a way that they can immediately understand.
There is no better way to establish that we really know something than
to draw it. (Dan Roam, 2010).

MIND MAP

A mind map is used to show the different ideas associated with a particular concept in a
visual way: what do you see, what do you think about what you see, what makes you
wonder? Once you have the concept clear it is captured in the tool, usually shown in the
center, while the different ideas branch off in different directions.

A mind map does not necessarily have to be composed of drawings. Other visual elements such
as photographs can also help to express an idea in a dynamic and simple way.

Usually the central idea or topical axis is born in the center, given that mind maps are
expand from the inside out. The central idea is the mind map theme.

This may be:

– A problem that is being addressed.

– The project that is being born from brainstorming.

– A difficult concept that is trying to be created.

• Take a look. It is the first step to create a mind map. The information obtained serves as
a basis on which to work and from which some general knowledge can be extracted. In
this first stage, the limitations and consequences of the project must be identified.

ORIGINAL IDEA

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 IMPORTANT
Using this method to arrive at a business idea must ensure that it will be
based on real-life demand. A good hypothesis should be:

• Easily verifiable.

• Clara.

• Measurable.

The most simplified template for a hypothesis would be something

like: If [cause], then [effect], because [reason].

Once the topical axis has been determined, the next step is to create the main branches that
will describe the "headlines" of the most basic subtopics. The branches should help to start
organizing the information. The basic idea is not to include too many details and to highlight the key
words.

• Go. At this point you should reflect on the first step, look for repeated or similar patterns,
locate if there are discordant notes and find aspects that stand out. Use your memory to
remember if you have already observed something similar, facilitating visual
comprehension.

Headline subject

Headline subject Headline subject

ORIGINAL IDEA

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 Agile methodologies
Topic 1. Product management

Once the main topics within the subtopic have been identified, more information should be
added until the valuable information is exhausted, making sure to organize the information as
closely as possible to the main concept.

• Imagine. In this third step imagination plays a very important role. It is one of the most
creative stages. In this step the observed elements are interpreted and manipulated with
the intention of making them more understandable.

IMPORTANT Use images, illustrations and icons. Visuals help develop content and
increase memorization and concentration.
Why? Because they allow you to visualize the ideas, which makes the
brain process them faster. In fact, you could generate an image for this
idea right now.

Ideas should be classified by color. A mind map can address different topics. Therefore, it is
important to organize them. And what better way to sort the ideas than by color. Each line or
text box that agrees with a design theme should be represented in the same color. This way,
ideas can be easily identified and connected.

Headline subject

Headline subject Headline subject

ORIGINAL IDEA

20
 IMPORTANT

Keep the organization within the mind map by using standard colors for
the different levels of thinking.

• Sample. This is the last step, in which what has been captured is shared. Through the
reaction of the participants and the feedback it will be possible to know if the concepts
need to be simplified in a better way to make them more understandable or if there are
some aspects that have not been taken into account.

It is time to see the validation. If it is not as expected, we can always change course to
change the concept and start again. The visual contribution is an almost cost-free product.
Any company department that wants to communicate, test or try out any new, more visual,
more advanced and ecological process, only has to generate an idea and rely on the
creativity of the team to carry it out.

Doodling on paper is an excellent exercise to be creative, and it is recommended for any

memorization or design process. Sketchnotes are a visual-verbal media resource that also
relaxes and engages the whole brain. Like spoken words, sketchnotes are a form of creative
expression that transforms the experience into a visual medium.

What would we do if we had to represent a car?

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 Agile methodologies
Topic 1. Product management

We would draw whatever car we want, regardless of its size, color or shape. Good visual
thinking uses the relationship between objects to tell information. So, for example, a
relationship between the size of objects has meaning. What if we imagine several cars?

1.4. MVP PROTOTYPING

Dropbox is the best known case of a minimum viable product that became a success.

The popular file hosting service began its life in a sketchnote by Drew Houston, who was looking for
a quick way to share information with his team. What he reflected in the sketchnote was a simple
idea with a drawing of a box that could be used by several people.

This idea was born among multiple competitors. To make matters worse, the niche market
was practically nil, as Dropbox seemed to offer file hosting that companies did not need to
outsource.

Dropbox overcame these problems by creating a mind map highlighting an idea that clearly
described and demonstrated what Drew Houston and Arash Ferdowsi's technology was
capable of: real-time synchronization of files between multiple users. The impact was
immediate: the presentation attracted tens of thousands of new users to the Dropbox beta
and created a lot of interest, which was captured in a video.

22
The Dropbox team was able to gauge the level of customer interest in their new technology.
While the first version had a manual sync that was updated via a validation button and the
upload took a long time, customers who used the early beta versions found the utility of real-
time file sync enormous, but dismissed the idea of cloud file hosting.

The first versions showed the team the way to commercialization, and sometimes things do
not always go as planned in the initial idea. Despite putting a lot of effort into the product, at
that moment the team decided to abandon the original idea and pivot towards what the
customer demanded.

The team continued to receive feedback from more than one million new users, which
triggered a very productive feedback loop to further improve the MVP, which eliminated the
validation button, improved uploading and added new services and features based on user
demands.

Dropbox's success was such that, in 2018, with a total of 14 million users, it went public at a
valuation of more than $12 billion.

1.4.1. BASIC CONCEPT: MVP

Developing a minimum viable product (MVP) prototype in the Agile methodology involves
fairly simple and logical steps. In a nutshell, it must respond to the problem we have stated in
the mind map with a basic set of hypotheses that will help us solve it.

The project vision is an important part of product management, and is defined by the product
manager. It is not yet a product development strategy, but it is where strategy development
begins. The vision may come from brainstorming or it may be based on the overall mind
map, but it is going to be immovable in the future. Why? Because the vision is the bible of the
project and has to set the direction to be followed throughout the life of the product.

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 Agile methodologies
Topic 1. Product management

IMPORTANT

In developing the vision, a project manager sets the objectives for the
product and defines the specifications.

A well-specified product vision should answer the following questions:

• Which end user will use it?

• What problem does it solve?

• How can we measure its success?

Prototypes based on visual thinking help test assumptions and validate ideas, as well as
understand end-user goals and expectations related to the product or service. When
validating ideas, you can start with low-fidelity prototypes and work your way up, since in
Agile thinking you can prototype and test ideas at any stage of development, from
conceptualization to delivery, pivoting or revisiting new paths, and building on the actions of
the user as they use the product.

The advantages of starting an MVP through the agile approach include:

• Speed of launch. Reduces product or service design and construction time.

• Flexibility. While you work on the final product, the customer has a product to use.

• Better products. Increased learning of the final product in real time.

1.4.2. DEFINITION OF A CYCLE

A Build-Measure-Learn cycle focuses on the strategy of experimentation based on the
hypothesis of customer needs and the solution they require. This model based on creating
rapid learning cycles in each of the life cycles is the essence of the Scrum manifesto. But to
better understand what a minimum viable product is, we need to focus on the following three
principles:

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 1. Minimum. Although the MVP is not a finished product, it has to meet a need. The first
objective, according to the Agile methodology, would be to develop a product quickly that
satisfies a real need.

This notion of minimums is also understood in terms of cost, since the fewer features the
product has, the less expensive the version will be. Dropbox's first prototype reflects
exactly this notion.

2. Viable. Unlike a conventional prototype, bringing a minimum viable product to the market
generates value, either because it generates revenue, image or brand. In addition, with
the MVP, costs are reduced and an increase in the resources allocated to the
development of the final product is guaranteed, which generates a return on investment
(ROI).

Generating a return on investment can be an expansive growth development strategy for

the project, by reinvesting the revenue generated while continuing to evolve the other
functionalities of the final product or service, as demonstrated by the creators of
Dropbox.

3. Product. Even if each cycle generates a simplified MVP of the product, however basic it
may be, it must meet the primary need, fix the bug and be attractive by allowing end
users to use it in real-world conditions. Dropbox beta users were able to see that it
allowed them to work individually or collaboratively on the same file without the need to
send emails.

The value of an MVP lies in the learning opportunities it provides. It is basically a springboard
and the beginning of a feedback loop. This cycle allows to test and gradually improve the
product in three stages: build, measure and learn, to decide whether to pivot or persevere.

1.4.3. BUILD - MEASURE - LEARN

• Build a product as soon as possible to offer it to the customer.

• Measure the functionality of enhancements. As a standard, the following areas should

be measured in a controlled environment before starting a new product cycle.

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 Agile methodologies
Topic 1. Product management

– Functionality.

– Usability.

– Compatibility.

– Crowd.

– Interface.

– Performance.

– Safety.

• Learn from the feedback for the next cycle.

IMPORTANT
Open your mind. It is increasingly clear that developing a minimum
viable product or service in an intelligent and agile way is to assimilate
that there is no single prototype for the same business model. This
vision is the main task in an agile approach.

An Agile company uses the MVP as the centerpiece of an experimentation strategy. It makes
assumptions to meet customer needs with the product or service. Then, the team delivers a
first version of the product to find out if it is meeting the customer's needs. Based on the
information obtained, it continues to be created, modifying what is necessary or eliminating
what is not valid in order to start over. In this way, functions are prioritized, reducing costs or
starting to generate benefits with test versions. But how to prioritize needs? Some tools like
the ones we are about to see will help in the creation process.

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1.4.4. PRIORITIZATION MATRIX
The prioritization matrix is a fairly simple tool that allows a varied set of features to be ranked
in order of importance to the project. The objective of this tool is to define the features of the
minimum viable product that are urgent at the stage the product is at, and the features that
can be postponed to later versions, ranking the features in terms of urgency and impact.

URGENT NOT URGENT

IMPORTANT

DO IT SCHEDULE IT
NOT IMPORTANT

DELEGATE IT DELETE IT

1.5. PRODUCT MANAGER

1.5.1. BASIC CONCEPTS: WHAT IS A PRODUCT MANAGER?

The product manager establishes the product vision and strategy from concept to launch
testing. This role defines the launch process and identifies the cross-functional activities
required to bring the product to market, conducting in-depth research on end-user needs.

Product managers oversee the development process to ensure that new product changes
meet brand standards. Why? Because only if you have the product vision, having defined
what the ideal customer experience should be, based on a thorough understanding of their
needs, can you create the product they demand.

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 Agile methodologies
Topic 1. Product management

1.5.2. PRODUCT OR SERVICE MANAGEMENT

Product management is the process of bringing a new product to market or developing an
existing one. It starts with the idea that the team develops on the mind map and ends with
the evaluation of the product's success as an MVP. Product management brings together
design, marketing and sales.

IMPORTANT Product management is led by a product manager. This is not to be

confused with a project manager. A project manager is responsible for
product development, while a product manager's responsibility is to
manage the product from the very beginning, from before the idea is even
planted on the mind map to the launch of the final product.

DESIGN

The first thing a product manager does is to look for opportunities to develop a successful
new product or improve an existing one, adding the necessary features and identifying
opportunities.

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A product manager is the person who creates the internal vision and leads product
development from the ground up. He or she defines customer needs, works with stakeholders
and teams in creating the required product and has responsibility for the overall success of
the product.

IMPORTANT
The product manager must be aware of current end-user trends and
have a deep knowledge of the market in order to make the right
decisions. He/she is responsible for the product launch.

Actions in product management move from the strategic to the tactical. The entire product
management process involves:

• Vision development.

• Customer compression.

• Strategy development.

• Product development.

• Marketing and sales.

• Metrics tracking.

A product manager has to establish a clear and realistic roadmap of how the teams will
achieve the desired result, developing the product strategy through tools such as the internal
roadmap (inbound and outbound), which is used as an internal roadmap in the company,
showing both the vision and the short and long term objectives, as well as the connected
processes. This is used as an internal roadmap in the company, showing both the vision and
the short and long term objectives, as well as the connected processes. Why? So that teams
working at different stages of product development can track and keep track of next actions.

29
 Agile methodologies
Topic 1. Product management

IMPORTANT Inbound. It focuses on product development and includes vision and

strategy definition, product development, feedback and launch.

Outbound. It is oriented towards the commercialization of the product and

its sales. This includes marketing, sales and end-user feedback.

The product manager, on the other hand, has to negotiate with all members involved and
balance the demands and expectations of each team. Stakeholders have a great influence
on product development, as they can even cut the budget or change the schedule.

MARKETING

Marketing is one of the main factors contributing to product success, so product managers
work closely with marketing teams. This involves taking part in market research, observing
current product trends, analyzing user feedback and developing new strategies.

Another of the main responsibilities of a product manager is to define the minimum viable
product (MVP) and ensure that it fulfills its purpose. As we have already seen, when the MPV
is made public, a large amount of feedback is received from users, which must be used to
improve the product or service.

+ INFO
Amazon's vision is "to be the most c u s t o m e r - c e n t r i c company on
earth, where customers can find and discover anything they want to buy
online." It also strives to "offer its customers the lowest possible prices".

30
FOR SALE

Once the product is complete, it is time to get it to market. At this stage, marketing and launch
plans must be finalized and sales teams must be trained to begin distribution. Although at first it
may seem that a product manager performs only administrative tasks, his main mission is to work
constantly on product improvement to determine the amount of value that the product or service
to be marketed will offer. To do this, he can use the RICE matrix, generally including the
reduction, increase, introduction of new improvements and the critical analysis of the
elimination of parts in the product or service.

After launch, the product manager monitors its progress and analyzes the data to track the
product's success. KPIs (Key Performance Indicators) may vary depending on the company
and the product.

+ INFO Marty Cagan, author of Inspired: How to Create Products Customers

Love, defines the goal of a product manager as follows: "To develop a
product that is valuable, usable and feasible. A product manager must
have knowledge in three main areas: business, technology and user
experience.

31
 Agile methodologies
Topic 1. Product management

1.5.3. PRODUCT OWNER

The product owner is a version of the product manager oriented to work in and with the
teams to supervise the achievement of the assigned tasks, in order to ensure that everything
is managed on time. The product owner is the figure who brings the voice of the customer to
the team and prioritizes the product backlog, translating the product manager's vision into
requirements and detailed tasks to the teams. The product owner supports the development
team by creating user stories. Serves as a bridge between the customer and the teams.

IMPORTANT
The product owner works with the development team to ensure that the
right experience is being built. And the project manager focuses on all
cross-functional work, managing the schedule within budget.

The product owner does not usually create a roadmap that differs from the one established
by the project manager, so he or she has to work closely with the project manager to ensure
that priorities are aligned.

In an a g i l e environment, this is the role responsible for participating in daily scrum meetings
and managing sprints, working closely with the development team. You may also work with
designers and developers to define detailed requirements and ensure that the technical
infrastructure supports the future product.

PROJECT MANAGER

The project manager defines the roadmap to show the upcoming work related to each cross-
functional release (with development and testing) and defines the schedule for completion.
The project manager identifies dependencies and plans resources. It is the main asset to
optimize products through constant rediscovery and innovation.

32
The project manager provides support to the teams to meet the schedule of deadlines;
controls the time required by the projects and identifies potential problems related to the
scope of resources. He/she does not have a metric of objectives to define success, since
he/she must follow the lines of requirements that are immovable and that are set by the
product manager and transmitted by the product owner.

REMEMBER

• Product manager. He has the vision of the product and defines what the ideal customer
experience should be. He bases his criteria on a deep understanding of the customer's
needs.

• Product owner. Works with the development team to ensure that the right experience is
being built.

• Project manager. Focuses on all cross-functional work, managing schedules within

budget and supporting developers.

1.5.4. VALUE CURVE AND RICE MATRIX

THE VALUE CURVE

The value curve helps to better understand the strengths of the product and the strengths of
the same product in the competition:

• Helps to understand the industry.

• Visualize where the competition is and their strengths.

• Visualize where our product is and its weak points.

• Helps differentiate the product in the market.

The value curve analyzes the advantages and disadvantages of the same product in competition.

EXAMPLE

Premium airlines Low cost airlines

Advantages: Advantages:

• Comfort. They are more comfortable • Price. They usually offer affordable rates
and have a more attractive design. to everyone, which is their best asset.

Disadvantages: Disadvantages:
• Comfort. The space available to the
• Price. They are usually more
expensive. traveler is usually cramped and not very
comfortable.

33
 Agile methodologies
Topic 1. Product management

R.I.C.C.E. MATRIX

The RICE matrix was created by W. Chan Kim and Renée Mauborgne in the book Blue
Ocean Stra- tegy (2005).

The RICE matrix is a tool that seeks to add value to a company's product or service. The
authors' objective is to reach the "blue ocean", i.e. undiscovered markets, as opposed to the
"red ocean", which is the saturated market, where the only aim is to surpass the rival in order
to gain a position in the market, resulting in a lower profit margin and difficulty for growth.

The RICE matrix is based on the value curve. Although it can be used at any time, it is
essential to do so when starting an entrepreneurial project and when the company wants to
position itself, either because the competition imitates its product or because it has improved
it.

RICE stands for Reduce, Increase, Create and Eliminate. Actions that reduce costs
correspond to reduce and eliminate, while those that increase differentiation or utility are
increase and create.

• R. Reduce: indicates which components or elements can be reduced without directly

affecting the customer.

• I. Increment: shows which components or elements should be increased to add value to

the product.

• C. Create: indicates which new variables in components or elements we should create,

which do not exist in the competition, and allow us to stand out.

• E. Eliminate: indicates which variables or elements should be eliminated from the

product because they are the same as those offered by the competition and do not affect
the end customer.

Through this matrix all the variables are analyzed to identify the ideal value that could satisfy
the needs of the product.

EXAMPLE • Reduce. Continuing with the example of the airlines, we take Ibe- ria
as a reference. In recent years, this company has REDUCED the
costs of printing flight tickets and managing reservations by carrying
out both operations electronically.

• INCREASE. The priority factor that has INCREASED to strengthen

the airline is online reputation, providing a more personalized service
to customer demands.

• Create. It has differentiated itself from the sector by offering more

peninsular flights, CREATING a line of flights that maintains quality at
a lower price.

• Eliminate. Iberia has ELIMINATED infrastructure and printing costs.

34
1.6. UX/UI
More and more companies must deliver products or services that meet user demands, so it is
essential to have a commercial online interface that places the user at the epicenter of their
activity, offering a better experience.

1.6.1. USER EXPERIENCE

User experience is the process that takes place when the user navigates in a digital
interface, or when accessing certain services such as telephone assistance or commercial
information. When the user interacts with the company, criteria are measured such as:

1. User sensations:

– What is your opinion after interacting with the company?

– How are the different interaction factors presented?

2. Environment:

– What sensations does the environment bring to the user experience for it to be successful?

3. Needs and motivation:

– What are the user's needs?

– What information is the user looking for?

4. Interactions:

– What steps have been taken in each interaction?

1.6.2. UX
UX (user experience design) is the stage in which the user experience design is defined.

The role of a UX designer is to think, reflect and create how the product and service will behave
and how it interacts with the user experience it generates. Therefore, UX design must take
into account the expectations, needs and possible desires of users.

We can describe UX design as a process composed of different stages:

1. Research or research and analysis phase.

– Understanding needs. Conducting user interviews (user inter- views) to identify needs,
define objectives and understand user expectations.

35
 Agile methodologies
Topic 1. Product management

– People. Creation of standard profiles to identify the highlights of their experience, their
objectives or possible frustrations.

– Use case. Interpretation of the characteristics of each user and resolution of possible
problems that may arise.

– Journey map or customer experience map. Tracking the user's journey as he/she
interacts with both the interface and the service.

2. Brainstorming.

– Creation and brainstorming, measuring the user flow, reconstructing the different stages
of the user's journey to the achievement of a specific objective.

– Wireframe. It is the general framework of how the user will interact with the company.

3. Reporting.

– User testing (usability reporting). Once the product has been implemented, real users
test it in order to provide feedback on the user experience they have had.

– Split testing. The UX team tests versions and checks their impact on users.

– Analytics reporting. Statistics resulting from these tests such as average time spent on
interactions, bounce rate, etc.

1.6.3. UI
UI (user interface design) becomes part of the model in the implementation phase, creating
the design that has been devised in the UX phase for the user interface or image of the
company, in accordance with the ideas and values of the vision.

The role of the UI designer consists of creating representative and interactive models that
represent the ideas of the company's vision, mission, and values, transforming them into the
image that is projected through an interface.

1. Prototypes:

– Graphic design: icons, shapes and images to give meaning to the user's actions.

– Interface colors, illustrations, buttons, texts, etc.

– Typography: fonts, use of bold or underlined, etc.

– Page layout: spacing between blocks, number of elements in the graphic interface,
etc.

2. Front-end and back-end development.

36
EXAMPLE

Amazon is an American company founded on July 4, 1994 in Seattle by Jeff Bezos. It is

dedicated to e-commerce and was born with the aim of selling books online. 23 years later, it
has become the largest e-commerce company in the world, with more than 285 million
customers and sales exceeding 115 billion euros.

Amazon is also dedicated to storage and management services for files and information in
the cloud, through its Amazon Web Services division, with which it advises companies, also
providing multiple services: streaming video, premium service, etc.

Since its inception, it is a company with a total technological vocation, because its store was
hosted in a virtual framework such as the Internet. Therefore, its technological strategy is the
basis for the other strategies adopted by the company.

The main reason for Amazon's success lies in the customer, in that it focuses all decisions on the
customer and makes feedback as easy as possible. This allows it to evaluate customer
satisfaction and, above all, to analyze every click that users make in its online store. In this
way, UX teams can base their metrics on all the decisions made by users: the process alone
from the time the customer places his order until he receives it is analyzed using more than
300 different metrics. The detailed analysis of this huge amount of data is structured by
objectives. Of these, 80% are consumer-related.

On the other hand, Amazon's UI teams can freely investigate to discover and innovate,
although that work, as in the previous case, is quite defined by users. Thus, they seek to lead
technological changes in design that improve and/or create new products or services, thus
strengthening the position of UX design, which, in turn, strengthens UI design.

The highlight of this process is Amazon's learning sessions, where a fresh look at areas of
UX/UI design is always launched, including UX research (sound and visuals, for example)
that engages UI designers in the Amazon web experience, so that the user can go about
enjoying the various services or searching for product information across platforms in the most
enriching way possible.

Along with metrics, customer reviews are the main source of information for
these equipment.

37
KEY IDEAS
• Visual thinking is an Anglo-Saxon concept that translates as visual thinking. It is also
known as visual or spatial learning or picture thinking, and refers to a line of thinking
through visual processing and active listening.

• Visual thinking has been described as seeing images as if they were words. The concept
of visual thinking takes on enormous importance in the Agile methodology through
dynamics such as mind map or empathy maps.

• The empathy map helps to design the profile of an ideal user for the product. It is a
format that seeks to describe idealizations about a person related to the product or
service to be created. These aspects related to the feelings of the human being are done
through questions that help to assume to a certain extent how we know and understand
the user, and therefore how the company can communicate and relate to him.

• Visual thinking is therefore the most primary concept of the Agile methodology. It helps to
move from the fundamentals to the idea of the hypothesis of a com- probable product or
service since it shows a vision of what is to be created, focusing the user at the center of
the new product or service to be created.

• The conception of a product hypothesis idea that continues in the Agile process results in
a prototype.

• Prototypes are minimum viable products that are made available to the user to test the
reactions and acceptance of the product or service. A minimum viable product makes it
possible to present potential users with a partial version of the product or service that
allows them to test their interest in it in order to reaffirm the hypotheses in the idealization
of visual thinking that we have seen above.

39
GLOSSARY
— Buyer persona. Fictitious character that is constructed from ethnography of a
demographic sector, based on assumptions.

— Empathy map. The empathy map is a graphic tool developed by the XPLANE
consulting firm that is used to better identify the target audience.

— Active listening. Technique and strategy specific to human communication. Based on

the work of Carl Rogers, it is used in fields such as nursing, psychotherapy and conflict
resolution. In 2002, Rost defined it as "a generic term to define a series of behaviors
and attitudes that prepare the receiver to listen, to focus on the speaker and to provide
responses (feedback)."

— Inbound. It focuses on product development and includes vision and strategy

definition, product development, feedback and launch.

— Lead. A person or company that has expressed interest in a product or service.

— Mind map. Methodology and perspective based on visual and associative thinking
developed by psychologist Tony Buzan.

— Outbound. It is oriented towards the commercialization of the product and its sales.
This includes marketing, sales and end-user feedback.

— Product manager or product manager. A figure who is responsible for identifying

end-user needs and meeting them through the development and delivery of a product
or service.

— Product owner is the figure responsible for optimizing the value of the product.

— Project manager or project manager is the figure responsible for planning and
saving the successful execution of the steps to carry out a project.

— Sketch note. a visual thinking technique that consists of taking notes quickly by
combining drawings with words.

— Visual thinking. a tool for expressing ideas and thoughts graphically that facilitates
the understanding and assimilation of abstract concepts.

41
BIBLIOGRAPHY .
Mike Rohde (2007). Sketchnotes. Eyrolles.

Marty Cagan (2010). Inspired: How to Create Products Customers Love. Wiley.

Dan Roam (2010). Your world on a napkin. Management 2000.

Richhart, Church and Morrison (2014). Making the invisible visible.

Dave Gray (2017). Empathy Map Canvas.

43
TOPIC 2
Lean startup
 Agile methodologies
Topic 2. Lean startup

OBJECTIVES
• Know and understand the benefits of the Lean methodology.

• Identify different process areas of the Lean methodology.

• Learn how to develop a minimum viable product.

• Define the concepts of the scaling approach for product or service development.

• To deepen in the basic concepts of Lean Startup, seeing in detail how a minimum viable
product is made.

• Know some metrics and the six types of MVP that exist in order to know how to use the
appropriate one in each situation.

46
2.1. VISION

2.1.1. BASIC CONCEPTS: LEAN STARTUP METHODOLOGY

The Lean Startup Methodology provides a scientific approach to creating and managing new
businesses and getting a product into the hands of the customer faster. The Lean Startup
Method teaches how to drive a startup, but it is perfectly extrapolable to larger companies, as
the methodology is based on the ideas of how to lead, when to pivot and how to persevere
and grow with maximum acceleration. After all, in the current situation, all companies develop
or create new products, new departments or new user experiences.

+ INFO
Eric Ries coined the Lean startup methodology in his book The Lean
startup (2011), for which he drew on the Lean manufacturing theories of
Toyota in Japan by Taiichi Ohno, who developed this philosophy in the
1980s.

The methodology is based on the key differences between startups and traditional
companies: the former prioritize innovation over pre-established business models and favor
experimentation over planning, customer feedback over intuition and interactive design over
traditional development. In addition, startups are based on agile development which, unlike
the development of a traditional product or service, is based on short and evolutionary life
cycles. Agile development, based on Agile methodologies, shortens time and eliminates some
resources by developing the product interactively and incrementally. It is a process through
which startups create MVPs (minimum viable product).

47
 Agile methodologies
Topic 2. Lean startup

DEFINITION But what is a startup? According to the Pan-Hispanic Dictionary of Legal

Spanish, a startup is a "recently created, technology-based company".
A-Z This concept is a bit ambiguous, so we understand that a startup is a
newly created company that markets products or services through the
use of new technologies with a business model that allows for scaling
and rapid growth, sustained over time.

Startups have a series of differentiating elements that explain their nature:

• Innovative business model.

• Minimal operating costs, compared to traditional companies.

• Accelerated growth.

• Minimal capital investment costs. Obtain financing mainly through investors.

• They are based on the intensive use of technology.

• Simplify marketing processes.

• They adapt to continuous growth.

• They are always in constant evolution.

In the words of Eric Ries, a startup is "an institution of people organized to make a new product
or service under incredibly uncertain circumstances "1.

The Lean method presents four key principles:

• Instead of spending months planning and researching, product managers accept that
everything that fills a potential customer need is accepted as an assumption to create the
product vision in the business model canvas. The assumptions are tested to create an
MPV that is made available to the customer.
• All assumptions continue to be tested to try to validate user interest based on orders and
product usage. If there is no clear interest, the startup can pivot by changing to one or
more of the assumptions under consideration.
• The product is gradually accommodated, refined and tailored to the tastes and needs of
the end user until it becomes the final product using the proven facts.
• Transitions. The startup looks for new ways of implementation with the development
team to create new functionalities that respond to the customer.
The Lean Startup has become a reference manual for Agile companies. It is divided into three
parts: see, lead and accelerate.

1 Ries, E. (2011). The Lean startup method. Deusto.

48
2.1.2. WHAT IS THE PRODUCT VISION?
Creating a product or service, as well as developing new features of an existing one, requires
starting with its definition. The Lean Startup recommends that this phase should not take too
long, since the less time it takes to put a product or service on the market, the faster the
learning process begins and the sooner improvements can be implemented.

New products that are created without data that can support them are based on hypotheses
validated through market research, feedback and testable hypotheses that are subjected to
data analysis so that we can learn from them.

A vision of the product or service describes its overall long-term mission. Vision statements
are aspirational and concisely communicate where the product or service hopes to go and
what it hopes to achieve in the long term.

The statement should serve as a guide and reminder to all stakeholders involved in product
development. It should answer two important questions:

• Why is the product created?

• What is the product expected to achieve?

To understand the importance of having a defined roadmap, consider how difficult it would be
to develop a strategically sound product or service without a vision. How would the team
know where to focus resources? What features would developers prioritize? On what
strategic basis would marketing make decisions?

The vision allows the team to take a scaling approach to product or service development.

• High-level vision.

• Strategic guide.

• Action plan: product roadmap.

49
 Agile methodologies
Topic 2. Lean startup

2.1.3. MVP
The minimum viable product (MVP) helps to start the learning process as quickly as possible.
It is a faster way to start the feedback loop. MVPs provide the target audience's responses
and improve the product or service, because they are a first prototype developed with basic
functionalities, but enough for a group of early adopters2 to consider that it solves a problem they
have. From its use, they respond with feedback that will allow improving, modifying or
discarding the product or service.

The creation of an MVP follows the following processes:

Through a presentation of the product or service that has not yet been
developed, the fact that an end user purchases a product provides us
Presale with two important results: first, it allows us to generate revenue to
develop the product or service and, second, it shows us which user
segment is interested in it.

It is about generating valuable content around the product or service in

Audience order to build an interested audience, either through a blog, a landing
page, etcetera.

A service is offered that uses some technological means, although

Beta version some execution features or processes are performed manually. The
user must be aware of this.

This MVP consists of creating a product in such a way that the u s e r

The wizard of accepts several manual processes as valid. In this case, the end user
Oz is not aware that the service is not finished, since some processes are
performed manually.

This is done when we already have a product or service developed,

Singularity but we want to implement new functionalities. The product is constantly
tested.

Based on a
third-party The product or service is based on a third party's products.
product

By following the Lean startup method, concepts are acted upon and validated quickly and at a
lower cost. In the following example we are going to create a new feature for a web page.

It has been detected that the competitor's website has created faster steps compared to ours
to generate certain routines.

2 Early adopters are the first customers to buy a product or service. They are consumers and users who believe
that a startup's value proposition provides them with a solution, even if it is not entirely perfect. It is possible
that they can help by providing knowledge and feedback for the improvement of that proposal.

50
The first thing, now that we know what the problem is, would be to establish the vision, based
on the following data to create the roadmap:

• Technical functionality.

• Create a prototype of the visual product of the application.

• Develop a service for the main functions.

• Test the service usage in its entirety.

• Determine the strengths and weaknesses of the service.

The technical functionality would be to put a button in a routine that makes the redirection to a
certain functionality more visible. Let's imagine that after a study we have reached this
conclusion, so we will immediately create a prototype of the visual product of the application. To
measure its acceptance, together with the marketing department, we have to check that the
design fits with the product, does not stand out too much, but invites to use it. At the same time,
a service is planned with the development department for the main functions already highlighted,
which would be the redirection to the service. Once we have the prototype, we can put it into
use.

To help organize, track and keep the roadmap up to date and on schedule, we can design a
template like this one: Canvas model.

Source: https://rosanarosas.com/modelo-canvas-personal/

51
 Agile methodologies
Topic 2. Lean startup

• Market segments. This block details all the information available on the user segment at
which the new functionality provided by the button is aimed, given that not all web users
make use of the space in which we are going to develop the functionality. It is also
necessary to think not only of the users, but also of the companies that may advertise. These
types of segments must be developed consciously and in their entirety.

• Value proposition. At this point we must explain what needs we cover in the market
segment, detailing what products and/or services we offer and how we differentiate
ourselves from our competitors. In this case, we would talk about the redirection to a
service that we have seen that users establish as compatible, although it is not necessarily so.

This section must answer and define questions such as what differentiation should we
brings this change to the competition.

• Channel: How do we deliver the value proposition to the user? Here we must take into
account how we are going to present our button, whether we want to present it as a sale
or simply develop it as one more part of the services we offer.

• Relationship with the customer. We have to think about whether it is an advantage for
the user to access an external part of the service through an automated system. In many
cases, the user of the product or service may feel more comfortable and secure
performing this action consciously and manually.

• Source of revenue. Think about whether the user is going to pay for the automated
service they are accessing or if they prefer not to pay, even if the product is of lower
quality. Our button can lead to a payment area of the web that will give us an advantage
when selling the product or service.

• Key activities. This section sets out everything needed to carry out the value proposition
and clarifies the activities required to launch it. Here we should talk about production,
troubleshooting and the platform that needs to be used.

• Key resources. In order to develop and promote the product, in this case the new auto
matism generated by the button, a series of physical and material resources are
required, such as patents or copyrights, as well as human and financial resources. This
section should detail all the needs to develop the proposal.

• Key partners: What will be the strategic alliances to develop the new product? Let's
imagine that the new automation meets a requirement of a supplier, or uses third-party
technology, so suppliers or partners must be present at this point for the project to be
viable.

• Cost structures. Define the most important costs of the activity and key resources. It is
important to keep in mind options such as user value creation when costs need to be
adjusted.

This business canvas template has to offer a clear vision of what characteristics the
button we are going to develop as an MVP will have, making sure that the product or
service is in line with the company's strategic objectives. To this end, the following
questions must be answered:

52
 – What are the objectives of new product development?

– What is the minimum viable product going to be used for?

– Are we working to achieve certain revenues in the next six months?

– Are our resources limited?

– Will the product attract new users?

Formulating the solution is only an appropriate step to start developing the MVP, as the
answers may not be in line with the current business objectives or financial plan. In this
particular case study, the company is committed to continue to focus on creating
enhancements that make the product interaction more viable, so we will continue to
develop the MVP that helps the user.

Once the vision is committed to the business objectives, it is time to think about the specific
solution that the button provides. Once the functionality of the button has been decided, it is
time for the developers to establish the action plan.

These solutions are to be written in the form of user stories and epics. They do not
represent the overall vision of the product, but only subsets of that vision that have to be
developed in a chain to achieve success.

Then you have to test the use of the service in its entirety. Here you measure customer
feedback, how many of them continue to log in as usual and how many use the new
button. At this point you have to consider a variety of factors, such as how much
adaptation time has to be given for the use of the new feature, how the user views it, and
so on. Determining strengths and weaknesses is essential in this step for the MVP.

+ INFO

Google's vision statement is to "provide access to the world's information

in one click."

The objective of the vision is to assist the product in its development, so that the initiatives that
the teams need to prioritize can be identified more quickly and easily.

To put it another way, it would be like a compass that each party involved in the product can
consult whenever faced with conflicting decisions.

Typically, the vision of a product or service defines two to five years or even longer, depending
on the industry and product life cycle.

53
 Agile methodologies
Topic 2. Lean startup

IMPORTANT The vision adds value to the product by making it easier for the team to
clearly articulate the high-level objective driving its development. This can
help align the various groups and departments in the Agile enterprise.
With a shared vision, everyone has a goal to achieve, which can help us
remember why you are doing what you are doing.

We list below 8 benefits of the Lean startup philosophy:

• Delivers value based on changing customer needs, thereby improving service and
satisfaction.

• Enables more optimized growth based on continuous improvement.

• It greatly reduces the risks and costs of launching the final product.

• It allows great agility, high quality and low cost.

• Encourages shared responsibility and leadership.

• The market guides the strategy.

• Allows less resources to be invested in the learning and testing phases.

• Reduce activities or processes that do not add value.

• Other benefits are highlighted in the following sections:

2.1.4. RESPONSIBILITY
The vision for the product or service should influence how everyone involved in the organization goes
about their work. With this in mind, the inspirational idea for a roadmap can and should come from
any member involved in the development, and any team leader should actively solicit input from
everyone involved, regardless of their role in the project.

In any case, the product manager is ultimately responsible for creating the vision and driving
the roadmap statement through to completion, ensuring that all parties involved are aware of
it and support it.

2.1.5. PRIORITIZATION
The vision should be the basis for guiding decisions and helping to prioritize features or
tasks, in order to channel energy into activities that really matter.

54
2.1.6. MOTIVATION
Motivation also plays an important role. Management should occasionally remind the teams
that their daily roles and activities make a decisive contribution to achieving the objectives of
the roadmap. This helps to focus more on the work and to make a difference in terms of
product development.

2.2. ADDRESS
The Lean startup method is largely based on how a project or service is managed, and to
manage, the Create-Measure-Learn information feedback loop must be taken into account.

As we saw earlier, the ideal is to bring the product or service to market as quickly as
possible, since once the MVP has been created, the information feedback loop can be set in
motion.

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 Agile methodologies
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Leading in Agile means that the team can focus on significant, high-impact aspects of the
business. It also means adopting certain leadership attitudes:

Management must have a clear medium- and long-term vision of the future
Vision
before it happens. It must always be several steps ahead of the market.

Flexibility You have to be willing to veer in case the roadmap does not work.

Toughness To have firmness and perseverance to achieve a goal.

Tolerance
to Ability to handle fear, to fail.
ambiguity

Believe in the idea, think that with the product or service devised you
Passion
can change the world.

Belief in Credibility is based on the fact that one can and is capable of achieving
the proposed objectives.
the project

2.2.1. VALIDATE LEARNING AND WASTE

The design sprint relies on validated learning as its main tool, as an approach to conduct a
series of experiments supported by empirical data collected so that each team member can
validate the solution to the problem or pre- sit a new alternative.

But how do we know in advance if the course of action or time is of value? The answer lies in
the create-measure-learn process (build-measure-learn loop), which is based on letting
users test the product to get the feedback that allows us to interpret the data and start the
cycle again.

2.2.2. DESIGN SPRINT

The design sprint process was created by Jake Knapp during his time at Google Venture in
2010. His goal was to find better ways to make meetings more efficient and project cycles
more agile.

Most companies have meetings that go nowhere, that get into endless loops that create
tension among participants. The design sprint helps to untangle the mess of ambiguity,
providing a structure for problem solving and focusing the issues on what really matters. The
sprint process leverages different mindsets rather than seeing multiple parties as an obstacle
to progress. It incorporates the variety of individually thinking parties into a team in a timed
environment.

56
The design sprint is a five-day process:

Day Target

Day 1 Map the problem and choose the approach.

Day 2 Outline solutions by all participants.

Day 3 Making difficult decisions, basing ideas on testable hypotheses.

Day 4 creation of a high-fidelity prototype.

Day 5 Test.

DAY 1. UNDERSTANDING THE PROBLEM

The first part of the day is aimed at getting the whole team on the same page, so the problem
is presented and everyone discusses which part to focus on first. Each team member can
express his or her opinion on the approach he or she thinks is most practical.

The research phase includes processing the problem across the table, and to the extent
possible, including information from SWOT, interviews, surveys, empathy maps, etc.

The second part of the day should end with the elaboration of a document in which the points
to be acted upon and the main insights obtained are detailed.

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 Agile methodologies
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DAY 2. SUBMIT PROPOSALS

Each team member will spend the day outlining his or her own solution to the problem, trying
to get each member of the table to work individually. In this way, more solutions will be
reached and no one opinion will change the others.

The idea is to create a quick idea to convey a solution as visually as possible. This is where
tools such as Sketchnotes come into play, which can help us to express our argument to the
other members.

DAY 3

The first hours of the third day will be used to discuss and choose the different options, as
well as to decide what will be prioritized, always from a general point of view and adopted by
the whole team. To reach this point, a vote can be taken on each idea to see which option
has the best chance of success. In any case, modifications can be introduced with the points
made in the different presentations.

From this third phase, a time line agreed upon by all must be obtained, clearly defining the
points to be carried out.

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DAY 4

The fourth day is dedicated to outlining the points of the timeline that was defined in the
previous phase. This is where the steps to be taken begin to be cemented.

The final result should not be an optimal solution, but rather a first test that serves to
start getting feedback and further develop the concept.

Positive feedback must be achieved from this day, so it is important to be clear about the
concepts that will be asked during the testing phase.

DAY 5

The last day of the design sprint is the most important, since in this phase all the previous
work is tested and everything must be well recorded and documented.

This involves testing the solution to the problem, either with real users, KPI, etc., to see how
they interact with the product and find bottlenecks, doubts, or new problems that may be
created.

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 Agile methodologies
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Once the MVP is presented, the experimentation phase begins. As a general rule, this is a
phase full of failures since it takes time, money and effort to get the product as the customer
demands it; however, you should not stop experimenting. Those failures are validated
learnings that can have a good influence on the future.

IMPORTANT

In the Lean Startup methodology, failures are learnings.

2.2.3. DIRECT BY MEASURING

It must be clear how to measure the progress of the project. It is essential to implement
analytical processes that consist of measuring the relationship between the product or
service and the user at each stage of the interaction process. The metrics may vary in each
company, but they must always focus attention on the most appropriate data for achieving
the adopted vision. They must provide information on which objectives must be met at each
stage to generate value.

Nowadays there are many ways to measure the level of user response, but the feedback is
the one that will help to learn and make decisions about the product or service to pivot or
continue in the adopted line.

Changing the direction of the product or service or following the same course of action that
has been adopted is another key concept of The Lean Startup. Any decision taken must be
based on the opinion of the users, as well as on the results obtained.

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The following is a catalog of pivots:

A part of the product becomes the whole product. In this case, one
Zoom in part of the functionality cups the whole product because users
discard the rest of the functionality.

Pivot away. This pivot occurs when a product is not able to support
the company, so its functionalities have to be expanded. The
Zoom out product offering increases in order to be able to support the
company and have a sustainable business.

Changing user segmentation is a reason to pivot. If the product or

User service was originally intended for men but is being better received
segmentation by women, pivot to focus on the new segmentation.

The user confirms that the product does not solve their problem. In
Consumer this case, you should identify the problem and pivot to create a new
needs product or service.

Platform It pivots depending on the digital platform and the requirements for its
preservation on it, as well as changes due to migration between them.

Business Sometimes a product or service can generate a lot of margin on a

small volume of business. When this happens, you can pivot to
architecture achieve more volume by reducing the margin.

Integrating a new value into the company may imply pivoting, since thanks
Value capture to that value the product or service may face new challenges.

Growth Change the growth strategy to grow faster and with an increase in
engine profits.

Sometimes you can offer a good product or service in the least

Channel appropriate sales channel, so you can pivot to reach a better
market.

Pivoting due to new technological improvements, which allow for

Technological greater achievements.

Source: Ries (2012).

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 Agile methodologies
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Making decisions in the Lean Startup methodology makes it more objective and assertive,
since it is possible to clearly indicate which aspects of the product or service the user wants
and which should be changed or eliminated.

Pivoting does not mean that the vision is incorrect. On the contrary, it is about redirecting
what has been developed and learned in a more positive or promising direction.

2.3. ACCELERATE
The Lead startup recommends not to invest too much capital in large improvements, but to
invest smaller amounts in small improvements to keep learning. This factor leads to a faster
circle of interactions in which changes are made constantly and systematically.

Sustainable growth is based on four elements:

• Word of mouth.

• The side effect of the use of the product.

• Funded advertising.

• Repeated purchase or use.

A startup must be constantly changing to adapt to new users and the same applies to any
other type of company. This idea does not rule out loyalty, since it is a matter of preserving
what works while developing product or service improvements to increase the target
audience.

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 IMPORTANT
Although the method drives the rapid movement of growth, it is not
recommended to go too fast in the development of the product or
service and its improvements, as going too fast can create new
problems.

2.3.1. FEEDBACK
Growth is nourished by feedback loops. We can distinguish three engines of growth.

• Sticky engine.

• Viral engine.

• Paid engine.

The sticky engine, or loyalty model, is a growth engine model based on attracting and
retaining consumers over the long term. It is based on tracking the rate of abandonment of
the product or service.

Real
Natural growth rate Abandonment rate
growth rate

The speed of growth is determined by the real rate, which is simply the result of subtracting
the rate of abandonment from the natural growth rate.

The viral engine, or viral growth engine, is developed when knowledge of the product or
service spreads very rapidly. This growth occurs as a side effect of the use of the product or
service among users; its growth speed is determined by a single factor called the "viral
coefficient", which calculates the estimate of how many users are attracted by another user
in a short period of time.

Viral coefficient

If a product or service has a viral coefficient of 0.5, it means an increase of 5 out of 10 users,
attracted by each current user.

+ INFO
As Eric Ries points out, "companies that rely on the viral growth engine
should focus primarily on increasing the viral quotient, since any tiny
change in this number leads to dramatic changes in their future
prospects.

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 Agile methodologies
Topic 2. Lean startup

Finally, the paid engine, or paid advertising growth engine, is designed to make the user pay
for the product or service. This process is done through external systems, for example,
Google Ads. Companies using this engine can increase their growth rate in two ways: by
increasing the revenue provided by each consumer or by minimizing the cost of acquiring a
new consumer.

Price paid by the Production and Lifetime value

user variable costs (LTV)

Cost per
Lifetime value acquisition Profit margin
(LTV) (CPA)

The user pays to subscribe to the product or service for a set period of time. To obtain this
value, variable costs must be deducted from the amount paid by the user. If it is decided to
invest the lifetime value (LTV) of the product in advertising in order to grow, this would
involve a cost called cost per acquisition (CPA). To achieve growth, the LTV cost has to be
less than the CPA, thus obtaining a profit margin that will determine the growth rate of the
product or service.

Each company must decide between responding to user needs or innovating through growth
drivers, creating a system that can be either sustained innovation or disruptive innovation.

• Sustained innovation: incremental improvements to existing products or services.

• Disruptive innovation: Creates new products that differentiate from existing ones.

It must be taken into account that all engines have an expiration date. That is why Agile
thinking adapts each engine to the best time by making variations in the product or service
when it encounters a problem.

But how to identify the problems? Well, through the five whys methodology.

This methodology is based on asking why problems occur. In other words, if we identify a
problem and ask why, the answer will indicate another problem. Again the problem is
identified and the cause of the problem is asked again. And so on up to five times, in which
the root of the problem must be reached.

EXAMPLE

The Puerta de Alcalá, in Madrid, suffered on summer nights from an invasion of bats that
caused problems both for the monument, as the animals' droppings damaged the stone, and
for the cost of cleaning. The invasive species also posed a danger to the surrounding
population.

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The first problem that arose was the high cost of cleaning and maintenance of the
monument, but why was there so much dirt?

The answer was clear: it was caused by bats, but why were there bats?

This question made the team wonder why the animals seemed to prefer this habitat to the
one they were used to having in the Casa de Campo, a park on the outskirts of Madrid, and
after a study a first conclusion was reached: the bats came to the monument to eat, given that
there were a large number of insects in the vicinity of the spotlights that illuminated it. After a
study, a first conclusion was reached: the bats came to the monument to eat, given that there
were a large number of insects in the vicinity of the spotlights that illuminated it. Why?

The Puerta de Alcalá irrigation system had been replaced by a more efficient and ecological
system that consumed untreated water. This, together with the fact that irrigation had been
restricted in other areas due to the drought, had created sources of humidity that did not exist
in other parts of the city, so that insects took advantage of these areas to reproduce.

The purified water only suitable for irrigation contains a large amount of substrates and
actives that, in contact with the soil, provide greater sustenance for a large number of insect
species, which had proliferated in the area. The conclusion of the problem up to that time
was that nighttime irrigation of the green areas surrounding the monument was the cause of
the increase in the insect species that attracted the bats, but why nighttime irrigation?

The team in charge of solving the problem did not find a reason to follow the procedure with
night watering, so they changed the watering hours to the morning. In addition, changing the
lights in the monument for yellow ones caused the bats to gradually leave the habitat in
search of other more favorable spaces. This eliminated the problem and reduced the
monument's maintenance and cleaning costs.

• Problem: High maintenance and cleaning costs for the monument.

• Solution: Elimination of nighttime watering, and replacement of lights with warm colored ones.

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 Agile methodologies
Topic 2. Lean startup

Growth engines are processes that adapt to the user segment.

EXAMPLE

THE TOYOTA SUCCESS STORY

It can be said that with Sakichi Toyota began the mentality that led to Toyota's current way of
thinking (Liker, 2010). It was he who founded the spinning and weaving company that bore
his surname, in 1918, and who proposed the "Jidoka" concept: a way to end production
failures through "automation with a human touch", which would come to mean the facilitation
of quality from the source. The Jidoka system improved the effectiveness and efficiency of
spinning work by incorporating a methodology that mitigated product defects quickly and
early by helping to identify the root cause of problems and reduce wasteful work practices
associated with them.
His son Kiichiro Toyota continued with the Jidoka concept, but his curiosity about gasoline
engines led him to visit the Ford plant in Michigan in 1933 to learn how engines were
attached to automobiles on the assembly line. Following this visit, he suggested that they
adopt Jidoka's concept of correctly sizing machines in relation to the actual production
volume required and introduced error proofing to ensure good practice and quality in the
sequence of work processes.
Soon after, Kiichiro Toyota created a division of his father's automatic loom company, which
he called Toyota Automobiles, but it was not until 1935 that Toyota was ready to market its
first automobile, the Toyota AA, which was born under the same serial assembly processes
created in the United States.
In 1937, Toyota Motor Company became independent from the original family business,
adopting the just-in-time philosophy of on-demand manufacturing along with the Jidoka
system. On the other hand, the company's new philosophy understood that the future needs
of consumers should influence the selection of the necessary products and their storage and
replenishment. The person in charge of the transition to this new model was Taichi Ohno.

66
Ohno is the creator of the successful Kanban system, which takes Edward Deming's method of
incorporating quality at every step of the process to the scale-up level and integrates it with the
just-in-time concept and the Kaizen principle. The result is the true Toyota production system.

Toyota's production system is based on a number of concepts: "the traction system, waste
elimination, quick die changes (SMED), elimination of non-value-added work, U-cells and
one-piece flow". For this, it is the material storage and layout system that defines the
necessary flow between different processes, as determined by the customer's needs. Toyota
performs these processes using the Kanban methodology, which provides precise indications
to the customer on available tools and stock. Kanban matches the customer's possible
demand to the company's production in a sequential process.

Toyota's production system also identifies waste, called muda, as anything that does not add
value to customers. This waste is classified as:

• Overproduction.

• Inventory wastage.

• Defects.

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 Agile methodologies
Topic 2. Lean startup

• Wait.

• Movement.

• Overprocessing.

• Transportation and handling.

The system therefore aims to identify and eliminate these wastes in order to promote
production efficiency and effectiveness.

Another method adopted by the company is single- mi- nute exchange of die (SMED). The
objective is to improve production flow: each process must take a maximum of one digit (from
0 to 9) in time. This solved, in the first instance, the problem of bottlenecks in the body
molding presses that Toyota experienced during the 1950s and 1960s. The cause was
identified as the high changeover times from one press to another, increasing the volume of
production processes and cost. Toyota implemented SMED so that each production process
on the presses took less than one minute. In addition, the presses were arranged in a U-
shape, a design that increased worker efficiency by operating multiple machines at the same
time.

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Finally, Toyota's lean demand is based on the ideas of Shigeo Shingo, an industrial engineer
and the company's most important consultant since the 1960s. His system was based on
mastering the Kaizen concept, extending the success of Kanban-based manufacturing and
integrating people into effective and efficient processes. What Shingo achieved was to make
workers responsible and involved in the company's excellence, developing the SMED system
with the objective of achieving zero defects in Toyota's quality.

Today, Toyota's philosophy has changed minimally, although they have polished and
improved processes: they maintain the Kanban concepts that have made the company one
of the largest in the automotive market.

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KEY IDEAS
• The Lean Startup method essentially refers to a transformation process, methodically
and in an orderly manner that seeks to achieve excellence in the execution of business
strategy, creating added value through the elimination of errors or problems in any type
of business or service.

• The Lean concept emphasizes the elimination of "waste" or processes that do not add
value in a continuous improvement approach that streamlines any process. It is therefore
focused on the user and the delivery of a product with the highest quality in the shortest
possible time, reducing costs in the realization of a minimum viable product, which
follows the vision of the main role of the product manager since he is the maximum
responsible in its conception and definition of the Build-Measure-Learn circuit (Create-
Measure-Learn).

• These Build-Measure-Learn parameters serve to shorten development cycles, measure

progress and gain feedback from customers and users. This is achieved through
validated learning, scientific experimentation and iteration in product or service launches.

• In this type of methodology, roles take on great importance. Listening to everyone

involved in the project can have positive effects, increasing motivation and responsibility
for the product or service being created.

• Lean methodology can offer benefits to the company, reduce waste in the repetition of
non-constructive processes and unnecessary errors, add continuous value and
contribute to generate greater efficiency for the company, contributing to greater
competitiveness in the market.

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GLOSSARY
— Lean startup. Method that teaches how to drive a company forward; it is based on the
ideas of how to lead, when to pivot and when to persevere and grow with maximum
acceleration.

— Project manager. It is the figure responsible for planning and saving the successful
execution of the steps to carry out a project.

— Nsights. Perspective on an issue or problem.

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BIBLIOGRAPHY .
Pan-Hispanic Dictionary of Legal Spanish.

Eric Ries (2011). The Lean Startup. Currency; 1st Edition.

Jake Knapp (2016). Sprint: How To Solve Big Problems and Test New Ideas in Just Five Days.
Transworld Digital; No. 1 edition.

Jeffrey K Liker (2010). Toyota's keys to success: 14 management principles from the world's
largest manufacturer. Management 2000.

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TOPIC 3
Agile Management
 Agile methodologies
Topic 3. Agile Management

OBJECTIVES
• Understand the principles of agile methods.

• Assimilate the benefits of the agile methodology.

• Initiate in the application of agile methods.

• Compare the agile method with classic life cycles.

• Know different agile methods.

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3.1. AGILE FUNDAMENTALS
DEFINITION
The agile methodology is a practice that promotes the continuous
A-Z interaction of development and testing throughout the product or service
development lifecycle. It is one of the simplest and most effective
processes for turning the vision of a need into a solution.

Describes development approaches that employ continuous planning, learning,

improvement, team collaboration, evolutionary development and early delivery, encouraging
flexible responses to change.

Agile methodologies are project management models with roots in IT and created from the
dissatisfaction of a number of developers with the lack of fluidity of traditional management
models. Agile is associated with a collection of principles that value adaptability and flexibility.
Agile implementation mechanics bring customer buy-in to the team so that alignment of
expectations with respect to deliverables are made from the start. Here, agility helps to break
down complex tasks into multiple checkpoints, allowing functional portions of value elements
to be delivered in a consistent manner, reducing, for example, the customer's wait time for
the use of a benefit.

Agile aims to provide better responsiveness to changing business needs and, therefore,
focuses on enabling teams to deliver the product in feasible times, thus, the adaptability of agile
makes it ideal for scenarios of uncertainty, such as projects that are developed with new
technologies or constant changes of direction.

The document on which the methodology is based is called The Agile Manifesto1, and it outlines
4 values and 12 principles that guide the agile philosophy.

1 https://agilemanifesto.org/iso/es/manifesto.html

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3.1.1. VALUES OF THE AGILE METHODOLOGY?

The values defined in the agile manifesto do not focus on practices, methodologies or
processes, but, rather, are based on a change of mindset in the organizational culture of the
company.

The four pillars are:

1. Individuals and interactions on processes and tools.

2. Software' running on comprehensive documentation.

3. Collaboration with the client on contract negotiation.

4. Response to change about following a plan.

3.1.2. WORK TEAM. PROCESSES AND TOOLS

The first pillar is people, because well-motivated and well-trained teams create great
projects. When communication breaks down, each team member can lose the whole vision.

If processes and tools are seen as the way to manage product development, people and the
way they approach the work must fit the processes and tools. It is really important to
measure the feelings of interactions, this "soft" part obviously focuses on the quality of
interaction. Every sprint requires full attention. It requires being connected to what is being
done as a whole team, so each member has to know what the whole team is doing, therefore
conformity to individualism makes it difficult to accommodate new ideas, new requirements
and new solutions to problems.

Agile approaches always value people over process. This emphasis on individuals and
teams puts the focus on people and their energy, innovation and ability to solve problems. It
uses processes and tools in agile project management, but they are intentionally simplified
and directly support product creation.

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 IMPORTANT The more robust a process or tool is, the more you will spend on its care
and feeding and the more you will devote to it. However, with people at
the center, the result is a leap in productivity. An agile environment
thrives on the human being by encouraging participation and adapting
new ideas and innovations.

By valuing people, interactions, processes and tools, and keeping a written record of project
communications, the benefits are greater:

• Communication is clear and effective.

• Communication is fast and efficient.

• Teamwork becomes stronger as people work together.

• Development teams can self-organize.

• Development teams are more likely to innovate.

• Development teams can customize processes as needed.

• Members of the development team can take personal ownership of the project.

• Development team members can have deeper job satisfaction.

3.1.3. FUNCTIONAL PRODUCT, ON COMPREHENSIVE DOCUMENTATION

When it comes to documentation, the agile methodology analyzes what is necessary and
what is not. In this context, the following questions are asked before creating a document:

1. Who needs it?

2. Why do you need it?

If no convincing answers are found, there is a strong likelihood that delivery of the document
will not be necessary, thus encouraging time to be spent on other aspects of the project.

Often, the only documentation needs are:

1. Requirements documentation: details about features and needs in order to create a

product.

2. Technical specifications of the product: documenting how a product is created can

facilitate future changes.

Ultimately, agile project teams spend more time on p r o j e c t development and less time
on documentation for a more efficient delivery of a working product.

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Topic 3. Agile Management

3.1.4. COLLABORATION WITH THE CUSTOMER ON CONTRACT NEGOTIATION

The agile manifesto values "customer collaboration over contract negotiation," which should
be in continuous development, creating a feedback loop with your customers so you can
constantly ensure that your product works for them. These strategies include changing the
mindset of customers and providing different work options.

Collaboration with the client allows us to address challenges and different objectives before
they become major problems. Adjustments can also be made earlier in a project when they
are less costly.

3.1.5. RESPONSE TO CHANGE ABOUT FOLLOWING A PLAN

In agile methodologies, a short period of time is requested by "responding to change" rather
than following a plan. Circumstances change, and sometimes customers demand additional
features in the final product that may change the scope of the project. In these cases, project
managers and their teams must adapt quickly to deliver a quality product and ensure full
customer satisfaction.

Agile practices must always be supported by good organizational planning to make

resources available, keep people assigned to teams and coordinated, and generally provide
the context for agile practices to thrive, always having the ability to change direction when
needed.

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3.1.6. THE 12 PRINCIPLES OF THE AGILE MANIFESTO
Although the four pillars are the basis of the methodology, there are twelve principles that complement it:

Satisfy the customer through early and continuous delivery of valuable

Principle 1
software.

It is accepted that requirements change, even in late stages of

development. Agile processes take advantage of change to provide
Principle 2
competitive advantage to the customer, since, in agile environments,
change is a constant.

Functional software is delivered on a frequent basis, between two weeks

and two months, preferably for as short a period of time as possible. A
Principle 3
large part of the success is to maintain constant interactions with both the
customer and the market.

Business managers and developers have to work together on a daily basis

throughout the project, in order to be closer to the customer and ensure
Principle 4
the functionality of the product being developed.

Building projects around motivated individuals, giving them the

Principle 5 opportunity and support they need, and giving them the confidence to get
the job done.

The best and most effective methodology for communicating information

to the development team, and among its members, is the face-to-face
Principle 6
conversation, and this is because communication and transparency are
fundamental in environments of high uncertainty.

Working software is the primary measure of progress and, if it is not

Principle 7
measured, it cannot be improved.

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 Agile methodologies
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Agile processes promote sustainable development. Promoters,

developers and users must be able to maintain a constant pace
Principle 8
indefinitely. It is not about working longer hours or faster, but about
focusing on what is important.

Continuous attention to technical excellence and good design improves

Principle 9 agility. It is critical to focus on product or service quality because agile
promotes excellence in this regard.

Simplicity, or the art of maximizing the amount of work not done, is

Principle 10 essential. In agile, things are highly prioritized, and knowing how to say
'no' is one of the basics.

The best architectures, requirements and designs emerge from self-

Principle 11 managed or organized teams and this is because self-managed people
perform better than those managed by a third party.

At regular intervals, the team reflects on how to be more effective and

then adjusts and refines its behavior accordingly. Ultimately, it is about
Principle 12
improving the way we work systematically and continuously.

3.1.7. ADVANTAGES
There are several advantages of adopting an agile methodology over the traditional waterfall
model, the agile development methodology and best practices show its positive aspects on
organizations in the following terms:

• Customer benefits:

Although there are a number of benefits of the agile methodology, the benefits to the
customer are arguably the ones that will have the greatest impact on your bottom line.

The more satisfied customers are, the greater the opportunity to increase sales, build
long-term business relationships, maximize recurring revenue and strengthen the
company's reputation.

Faster progress and greater commitment mean that customers are more likely to get
what they envision, sometimes ahead of the scheduled deadline. All of these factors
increase customer satisfaction.

• Risk reduction:

Making an investment with a vendor or project management professional minimizes risk

to a minimum. With traditional project management methods where requirements are
gathered before work begins, the customer could get a complete project that is unwanted
or out of date with the actual product appearance, which means lost time and value.

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 By developing the Sprint, a short time is ensured between the development of each
feature, so that the customer can assess any changes so that they can be developed
quickly, or integrating new comments into the project almost immediately.

• Faster ROI:

Traditionally, the customer would have to invest in a software (or any other type of
project) or service development project without seeing a return on investment until
months or even years after the project was initiated. One of the major customer benefits
of the agile methodology is that projects implemented with this approach produce a rapid
return on investment.

Through incremental development, the customer can release features or even their
entire software program in a short period of time. Customers see projects completed
faster and, after only a few iterations, a working product (MVP) is ready for release.

The customer can also identify higher priority aspects of a project for their greater
business value by completing those tasks first, and once a completed product is
released, audience reaction can be quickly assessed, and changes based on that
feedback help implement the next Sprint.

• High product quality:

With the waterfall approach, it can be difficult to detect product problems or bugs until the
entire project is completed. A benefit of the agile methodology is that each iteration of a
project is tested over and over again to ensure that it works both during development and
after release. Continuous integration and daily testing are fundamental aspects of the
agile development process.

As each Sprint is planned and then started immediately, customers can define and
elaborate requirements just in time, which means that suppliers are working with the
latest direction and information.

Sprint retrospectives also play a key role in product quality. At the end of each Sprint,
team members reflect on what has been completed and how the product or service
processes can be improved. This ensures that the next Sprint is executed more
efficiently than the previous one.

• Greater control of the project:

Transparency in overall progress is difficult to achieve in any project, especially when

evaluated from the C-suite. However, one of the benefits of agile methodology is that it is
framed with increased control over project progress.

Daily sprint meetings provide a continuous view of how the project is progressing and
what tasks are being completed by each team member. This maximizes the amount of
information, increasing the transparency of the project at both the highest level and in its
depth.

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• Improved task prioritization:

Prioritizing tasks is the main function of the Project Manager. Identify what needs to be
delivered in order by assigning resources according to the needs, with the agile
methodology, tasks are managed at the beginning of each Sprint, which allows the client
to communicate priorities according to the information obtained from the feedback.

• Optimized organizational capabilities:

With task tracking, Scrum Masters (SM) can focus on productivity at both a high level
and a granular level. This provides an incompa- rable view of the project status at all
times.

3.2. AGILE MANAGEMENT AND LEADERSHIP

Agile is a philosophy that guides management in applying development models, which are
known as "Agile Frameworks". Through them it is possible to experience the agile mindset in
practice.

An agile leader possesses the characteristics of self-confidence, strong communication and

management skills, creative and innovative thinking. He/she also has the tools to deal with
failure and the willingness to take risks, with an eye for change and a sensible and reactive
approach in times of crisis.

The adoption by management of these frameworks makes the processes more dynamic, and
staggered in the productivity values, therefore, knowing each of them allows to extract the
best to reach the perfect solution.

The following are some of the most well-known agile frameworks in the most diverse
business contexts: Scrum, Kanban, Extreme Programming (XP), Lean and SAfe.

3.2.1. SCRUM METHOD

The Scrum methodology relies heavily on constant feedback, self-management, creating
small teams and working in sprints, in periods of two or three weeks of focused work2.

Its main objective is to enable the actors involved in the process to work collaboratively,
following the progress of the demands and deciding on the best ways to adapt. The model
proposes a results-oriented approach, through the optimization of productivity, continuous
improvement and quality of deliveries.

The main pillars of Scrum are:

• Transparency. All information and activities performed by the development team that
impact the outcome of the process must be known, understandable and available to the
entire team.

2 Schwaber, K. and Sutherland, J. (2020). The Scrum Guide. Retrieved from

https://scrumguides.org/docs/scrumgui- de/v2020/2020/2020-Scrum-Guide-Spanish-European.pdf.

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 • Inspection. Inspection activities, called Scrum artifacts, are monitored, prioritized and
evaluated periodically in daily meetings. This process allows the company to certify the
quality and development time, as well as to quickly correct possible deviations and
absorb the necessary modifications.

• Adaptation. After inspection, if any variation outside the defined scope of delivery is
detected, it will be necessary to refine the product through agility, adjusting the delivery
so that traces of the problem are eliminated. During the course of the project, feedback
meetings are held to evaluate the changing points and the way forward in new sprints,
ensuring better prioritization and reduction of these gaps.

The Scrum methodology has 5 ceremonies:

• Sprint Planning. The sprint begins with a planning meeting to decide what tasks the
teams will perform during the following weeks.

• Daily Scrums. Teams generally hold a quick daily meeting of about fifteen minutes to
determine if objectives are in alignment and being met.

• Grooming or Refinement. It serves to refine and clarify certain user stories during the
course of the Sprint, which may cause problems or clarify certain aspects of the user
story.

• Sprint Review. At the end of the Sprint, the increment is usually inspected.

• Retrospective. At the end of the cycle, a retrospective meeting will be held after the
sprint to see what they achieved and what they can improve next time.

5 SCRUM CEREMONIES

Sprint PlanningDaily Scrum Sprint Sprint Sprint

Review Retrospective Grooming
or
Refinement

The Scrum Master (SM) is responsible for managing the process, and only the process. He is
not involved in decision making, but acts as a leader to guide the team through the scrum
process with his experience and knowledge. He provides continuous access to agile and
Scrum dynamics, helping the team to discover the best way to apply it in each situation.

In addition, they are responsible for ensuring a true scrum process throughout the course of
a project. They hold the scrum framework together, facilitating the process for the
organization, the product owner and the scrum team.

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Among its functions are the following:

1. Plan the Scrum implementation together with the organization and help it understand
which interactions with the team bring value and which do not.

2. Assist the Product Owner in knowing how to organize the product backlog3 and maximize value.

3. Understanding and practicing agility.

4. Help the team create products of value and remove any impediments they have.

5. Facilitate Scrum events.

6. Work with other Scrum Masters to increase effectiveness in the organization.

7. Together with the Scrum team, update the burndown chart4.

Implementing Scrum requires three essential roles:

1. Development Team (DT). Cross-functional group or team responsible for analyzing,

developing, implementing and testing the product/service.

2. Scrum Master (SM). A member of the development team responsible for monitoring the
team's processes or activities, controlling deadlines, eliminating possible impediments
and guaranteeing milestones.

3. Product Owner (PO). Member of the team responsible for the project who is
accountable to the business and represents the interests of the customers/stakeholders.

3.2.2. KANBAN METHOD

Kanban is originally a Japanese word meaning "board". The tool originates from the Toyota
production system and was designed to provide a complete overview of the flow of tasks
performed on assembly lines to communicate project directives.

DEFINITION

The Kanban method is a strategy that shows work items in context with
A-Z
each other so that the team can see which items have priority and can
avoid committing to too many tasks at once.

3 The product backlog, or product stack, is a list of all the tasks that are intended to be performed during the
development of a project. All tasks should be listed in the product backlog, so that the entire team has an
overview of the work that is expected to be done.
4 A burndown chart is a graph showing the status of the progress of a sprint. It is a tool used in agile software
development, especially with Scrum, that relates the work that is pending to a given period of time.

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The principles of Kanban are:

The stages of production of the product or service are clearly

Clear management
identified.

The process of prioritization of deliveries is done according to

Adaptive development the value criterion: what has the highest value for the customer
is delivered first.

The production process can be measured and controlled,

Practices
allowing for a continuous improvement cycle.

Image representing the Kanban method.

3.2.3. EXTREME PROGRAMMING METHOD (XP)

Known as the Extreme Programming (XP) method, this agile framework emphasizes the
development domain. The methodology takes the product or service to the extreme in a set of
practices such as test, review, integrate, simplify and iterate quickly to constantly track
project development. XP is recommended for teams that need to work with constant changes
in direction.

Like other project management methodologies, the XP cycle includes:

• Understand what the customer needs → Exploration phase.

• Estimate the effort → Planning phase.

• Create the solution → Iterations phase.

• Deliver the final product to the customer → Putting into production phase.

What characterizes XP, as well as the rest of the agile methods, is a dynamic life cycle.
How does XP achieve this? Through short development cycles, called iterations, where
functional deliverables are generated.

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Tests Analysi
s

Developm Design
ent

XP encourages quality control as the primary project variable and the developer should not be
expected to give up quality for other variables. Therefore, the team and the client should be in
sync so that feedback is more assertive as they need it rather than delivering all updates in the
future. To support this goal, the XP method also emphasizes:

• Constant communication with clients and team members.

• Frequent launches in short cycles.

• Checkpoints for testing and customer feedback.

• Simple software design.

• Agile XP Example.

3.2.4. CRYSTAL CLEAR METHOD

Crystal Clear5 or simply Crystal is a scalable agile method based on team s i z e
and project priorities. The basic flow of the Crystal method includes three main phases:

1. Chartering: formation of a development team to determine how flexible the project is

and to solidify its development method.

2. Cyclical delivery: creating updates and a release plan, integrating test iterations and
delivering the product to users.

3. Wrap-up: consists of conducting a post-development review and reflecting on the

characteristics.

5 Cockburn, A. (2004). Crystal Clear: A Human-Powered Methodology for Small Teams. Addison-Wesley Professional.

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3.2.5. DYNAMIC SYSTEMS DEVELOPMENT METHOD (DSDM)
DSDM is user-driven and requires involvement at all times with frequent product delivery and
decision-making power given to the teams. The DSDM method consists of these phases:

1. Pre-project.

2. Feasibility study.

3. Business study.

4. Iteration of the functional model.

5. Design and construction iteration.

6. Implementation.

7. Post-project.

8. Agile DSDM Example.

Representative diagram of the DSDM.

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3.2.6. FEATURE-BASED DEVELOPMENT METHOD (FDD)

The FDD method identifies short, specific phases of work and focuses on the construction
and design of features. The FDD method is divided into the following steps:

• Modeling of domain objects.

• Development by characteristics.

• Ownership of components/classes.

• Featured teams.

• Inspections.

• Configuration management.

• Regular compilations.

• Visibility of progress and results.

• Agile FDD Example.

3.2.7. SAFE
The Scaled Agile Framework (SAFe) is created to transcend development teams and scale
Agile to the organizational level. Unlike Scrum and Extreme Programming (XP), which are for
teams, SAFe is intended for enterprise management as a whole.

The methodology is based on good documentation, providing a complete overview of the

business and technical principles that will be used to scale the company from the top down,
complying with the bottom-up evolution of the teams. In this way, SAFe helps to expand
compliance with agile methodologies, allowing Lean and Scrum concepts to enter the
organizational structure.

SAFe is based on Scrum and Extreme Programming, since, in order to succeed in

transforming a company into agile, the approach is to test the practices that have made
sense in the teams and to adopt them or not at the management level, according to
receptivity.

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 Source: https://www.grupocibernos.com/blog/safe-explicado-en-10-frases.

3.2.8. AGILE AND THE WATERFALL MODEL

Agile and Waterfall are two compatible methodologies in project management. Both
methodologies are based on software development, but the main difference is that Waterfall
is a linear system of work that requires the team to complete each phase of the project before
moving on to the next, while Agile encourages the team to work simultaneously on different
phases of the project.

The differences between them are:

Agile methodology Cascade model

Follow the incremental approach. It is a sequential design process.

Divide the project development life cycle The software development process is divided
into a sprint. into different phases.

The agile methodology is a flexible Waterfall is a structured software

methodology. development methodology.

Agile is the collection of many different

It is completed as a single project.
projects.

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Agile methodology Cascade model

The test plan is reviewed after each sprint. The test plan is reviewed after full
development.
The test team can participate in the It is difficult for the test to initiate any change
requirements change phase without in requirements.
problems.

3.2.9. AGILE AND THE SCRUM MODEL

The Scrum model allows to focus deliveries on business value in the shortest possible time.
It also emphasizes teamwork accountability and ite- rative progress toward a defined goal.

The Scrum framework must cope with the fact that requirements may be modified, or else the
project may be completely overturned.

Comparison between agile methodology and Scrum:

Agile methodology Scrum Model

The concept of end product is not clearly The project requirement will constantly
defined. change and evolve.

Changes should be implemented throughout The methodology is based on continuous

the process. feedback from all parties.

Team members are adaptable and can think The project team requires maximum
independently. autonomy.

Regular delivery of the product is required.

The project optimizes for rapid deployment.

3.3. AGILE METRICS AND VALUE MANAGEMENT

3.3.1. MATURITY MODEL

The perfect adaptation of companies to the different dynamics of agile methods is based on
identifying how agile the company is and where it wants to go.

The problems in adapting agile methods led to the need to find ways to support companies.
Structured approaches, such as maturity models, which aim to guide companies in their agile
transformation by providing comprehensive guidance on the use of agile processes,
implementation roadmaps that describe what agile means at its core.

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Based on this, an agile maturity model is defined as a tool that teams can use to assess and
improve organizational processes. While many teams start using the agile maturity model
when they first decide to implement an agile framework, such as Scrum or Kanban, you can
start using this tool at any time to determine how advanced your team's agile workflow is.

These are the different levels of an agile maturity model:

1. Standstill. During the pre-tracking phase, the team has not yet had to implement the
agile workflow methodology, so they may not yet have heard of this strategy, but they show
interest in more effective ways of getting the work done. Often, teams realize this because
they feel they are at a standstill. They may find it difficult to meet deadlines, adapt to
change or deliver value through their completed projects. Management and team members
may also see room for improvement with respect to communication, decision making and
task delegation.

2. Crawl or Crawl. When teams are in the crawl phase, they may be testing one or two agile
practices. As different agile frameworks are explored, teams may begin to see some
success. Communication may improve, productivity may increase, and teams may feel
revitalized to complete the work. However, it should also be understood that team members
may still be working on too many tasks at once, which can lead to stress and decreased
quality.

To continue to build on these practices and move to the next level, it is crucial to ensure
that management understands how the chosen agile framework works so they can
support their team.

3. Walk. During this phase, managers and company leaders are beginning to learn the
positive impact that applying agile principles can have. Team members may also see that
their efforts to optimize workflow are successful, but management support is needed to
sustain these changes. As management learns more about agile practices, they also
begin to incorporate them into their daily routines. Teams, therefore, begin to produce
high quality products at a faster pace and begin to explore automated processes to
continue to build momentum.

4. Run. Once the run level is reached, small teams can begin to be created to work on
specific sections of the product or service development process. These teams usually
work in short sprints, allowing them to focus on the most important tasks during each
development phase. At the end of each sprint, all small teams regroup to report on the
tasks they completed, evaluate progress and make adjustments to optimize the following
processes.

Everyone involved should have a good understanding of the objectives and the tools that
make it possible to achieve them, even though they may still be fine-tuning some of the
workflows as an organization.

5. Fly. In the fly stage, everyone involved in the organization needs to have a com-
pression of how to operate within its agile framework, know how to refine workflows and
establish key performance indicators to strategically track progress. In this phase, it may
be that management and members of the

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team often work side by side and see each other as equals. The team is able to deliver
continuous value through every project they work on and they embrace the idea of
continuous improvement. Productivity is therefore at its highest and people feel that they
are making an important contribution through their work.

IMPORTANT

Using the agile maturity model can help identify areas for improvement
and set goals to improve the way the team works.

While companies implement an agile maturity model to improve productivity and effi- ciency, there
are several other benefits commonly associated with this workflow methodology:

1. Understand the current position of your company, team or project.

2. Define the team's objectives.

3. Track the progress of the team.

4. Develop guidelines to support the team.

5. Establish a common language among team members.

6. Improve your organizational processes.

7. Increase productivity and organization.

8. Encourage collaboration among team members and departments.

9. Increase morale and improve company culture.

10. Increase employee retention rates.

3.3.2. METRICS
Metrics are agreed-upon measures used to assess whether the organization is progressing
in agile. However, to improve speed and agility, leaders, teams and business stakeholders
need a way to reliably measure the current state and identify what they can do to improve.
Therefore, the choice of what and how to measure is a critical enabler to continuously
improve project performance. SAFe brings us the best of the best tools for measuring
performance.

Azure Boards provides many in-context charts and dashboard widgets that allow you to
monitor and report on various SAFe metrics.

1. Accumulation of columns in pending jobs.

2. Reports in context.

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3. Managed query charts, such as pie, bar, stacked bar, trend and dynamic.

4. Panel widgets.

5. Equipment and project panels.

6. Analytical views to support Power BI reports.

7. OData queries to be used with Power BI reports.

CUMULATIVE PROGRESS PACKAGE:

Quick progress views are available through cumulative columns that allow you to view
progress bars, or totals, of numeric fields or items belonging to a hierarchy. Downstream
elements correspond to all the downstream elements of the hierarchy, being able to add one
or more columns of cumulative packages to a product backlog or portfolio.

IMPORTANT

Metrics should always be based on the roadmap.

DISPLAY OF EQUIPMENT SPEED

Teams have access to their speed through the speed in context report. This report shows the
total of the element bar graphs:

• Planned works.

• Completed.

• Completed late.

• Incomplete.

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This refers to a maximum of 10 last interactions, providing the average speed calculated for
the number of interactions shown.

CUMULATIVE FLOW DIAGRAM (CFD)

Each team at each level of SAFe implementation can monitor the progress they are making
using the integrated graphs.

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KEY IDEAS
• Agile is based on the philosophy of development to provide project managers with Fa-
meworks that they can use to create more flexible and efficient spaces in the creation
and commercialization of a product or service quickly, the meaning of Agile is the ability
to move quickly and freely.

• Agile has some frameworks or agile workspaces called Frameworks, which are tools that
help to follow the methodology, among these tools are Kanban, Lean, XP (Extreme
Programming) or Scrum.

• Scrum is the working tool within the agile methodology that most encourages
collaboration between customer and supplier, promoting innovation based on
prototyping. It works by defining the product backlog, dividing the product into sprints and
achieving the desired product through recurring iterations.

• Kamba is a type of project control panel that allows at a glance to know the status and
pending tasks, being widely used within the Scrum methodology, although it is fully
extrapolable to any other methodology.

• Extreme Programming (XP) is a methodology for small teams of software developers

oriented to the possibility of rapid changes. It therefore works with concepts such as pair
programming and rapid iterations between two developers who provide feedback to each
other as continuous feedback.

• A lean system is one that implements improvements in quality, cost, lead time and
product launch.

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GLOSSARY
— Burn up/down. Graphs showing the pending work.

— Waterfall or sequential engineering. Represents a type of linear workflow without iteration.

— Continuous Integration (CI). Minimum time to check that the product works, trying to
detect faults as soon as possible.

— Time-boxes. Name given to the time taken for each product iteration.

— UI. Design for the user.

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BIBLIOGRAPHY .
Anderson, D. and Carmichael, A. (2016). Essential Kanban Condensed. Lean-Kanban

University. Kent, B. and Cynthia, A. (2004). Extreme Programming Explained. Addison Wesley.

Kniberg, H. (2007). Scrum and XP from the Trenches. How we do Scrum. Lulu.com.

Lencioni, P. (2002). The Five Dysfunctions of a Team: A Leadership Fable. Jossey-Bass.

Moreira, M. (2017). The Agile Enterprise: Building and Running Agile Organizations. Apress.

Sehlhorst, S., Johnson, S., Kwee, X., & Hession, B. (2009). The Pragmatic Marketer. Pragmatic

Marketing.

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