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Agile Gurugram Conference 2020 | Aligning Agile to Business value | Rajneesh Verma
- 1. Aligning Agile to Business Value Rajneesh Verma Delivery Transformation and Operational Excellence 1 Content Fundamental need of Business & What value Agile brings Defining Business Value Prioritize by Business Value What Industry is doing - Stats Determining Business value Appendix - Business Value Game
- 2. Role of IT . Solution . Threats Competition Demanding customers Ever Changing Market Any Business (Organization) • Primary Purpose: Make Money • Survival dependent on • Sustainable Business • Profitability Expectations: Survival of the Fittest- What makes sense for Business Deliver product and services to: • gain new customers • beat market competition • improve Customer experience • Satisfy customer needs Innovation • Products & Services • Way products/services are developed & delivered • Deliver innovative solutions to gain new customers • Deliver product and services as quickly as possible to beat competition • Deliver solutions to improve Customer experience • Deliver Quality products to satisfy customer needs Other aspects • Efficiency • Employee Work-life Balance 2
- 3. Study by Forrestor Consulting, 2017, USA, suggests that: Organization that adopt Agile – What they say? Large number of organizations recognize: BUT THAT VALUE GOES UNMEASURED AND UNRECOGNIZED 3 they/their product & services must focus on driving & delivering value to the business: Improve experience of existing customer Agile practices provides value to the Business. Acquire new customers
- 4. * Source : Scruminc., Calculating Business Value, Agile 2014 Business Value* ? 4 Intersection of: • Skills, Capability • Customer segment – needs & wants • Passion – Vision and Mission
- 5. Prioritize deliverables by Business Value * Source : Scruminc., Calculating Business Value, Agile 2014 5 Add New Business Up Sell Retainment Operational Efficiency Play Business Value Game - Planning Poker Style Rank and prioritize Feature, Solution by Business Value they can offer
- 6. What industry is doing for aligning Agile to Business value Defining better business-related metrics and measuring business outcomes. Measuring the success of initiatives allows organizations to understand where they need improvement. For that reason, it’s important to specify the metrics that demonstrate business value Improving Agile management and scaling. Adopting more advanced Agile techniques requires tools that support automation and collaboration. Scaling Agile requires integration and collaboration across PPM, requirements management, and PM governance to facilitate team collaboration across the enterprise. Modernizing legacy applications. Organizations must modernize applications in order to keep up with customer demands for new and better experiences. This means not only delivering new applications but also updating older ones. Improving requirements definitions and management. Clear and concise requirements definitions enable companies to improve customer experience and avoid costly rework. A more comprehensive view of requirements is also essential at scale, since Agile alone does not cut it. Study by Forrestor Consulting, 2017, USA 6
- 7. Methods for determining the Business Value * Source : Scruminc., Calculating Business Value, Agile 2014 CFA 7
- 8. Appendix 8
- 9. Product Owner is the “ultimate” role that is in charge of defining product priorities and owns the product but involving other stakeholders like Market Experts, Customers, Key Account Managers to support will lead to: Play Business Value Game Planning Poker Style • common agreement between the Stakeholders • prioritization based on business value anticipated or expected by actual stakeholders • priorities understood and defined for the company and not for individuals or specific departments only. • All Stakeholders are aware and participate in defining what is more valuable to the company, without delegating the whole responsibility to Product Owners. • Product Owners and Stakeholders in sharing information related to Business Values in relatively short time. 9 Back
- 10. • Invite all Stakeholders to a meeting, generally time-boxed (2h-4h), called Product Management Board, where they will have to vote what is the Business Value of each of the feature that is at the moment defined into the Product Backlog (prioritized List of EPIC / Features). Rules of Play • Business Value will be determined relatively and justified in one of the following main categories(customize per need in agreement in terms of what makes sense): • New Business: every feature that will potentially bring new customers or new markets, will also bring a fresh flow of money • Up Sell: every feature that will potentially bring money from existing customers and could be sold as add-on, upgrade or plug-in • Retainment: every feature that will avoid losing customers and will avoid the company losing money as well • Operational Efficiency: every feature that will allow the company to save money (costs) given a potential increase in any operation (installation, configuration, customization...) 10 Back
- 11. The Product Management Board meeting proceeds as follows • The Product Owner will give the Stakeholders an overview of the features present in the Product Backlog. Product Management Board meeting Planning Poker Style Role Responsibility Moderator: Product Owner (PO) Readout on EPIC/Features Attendees: Stakeholder/ Business reps/ Acc managers etc. Participate in game, ask questions, justify value assignment to EPICs Logistics : Room, Business Value Game Cards carrying values (100, 200..Fibonacci series) • Stakeholders may ask questions and clarification on the features without going too much in details. • Stakeholders will have to choose a well understood feature as a baseline and agree on a Business Value to assign to it. • This value is not a “normal” number, but is one of the Business Value points in the sequence: 100, 200, 300, 500, 800, 1300, 2100, 3400. • After baseline item (reference) is defined, PO does readout on next EPIC/ Feature. Each individual owning a full deck of Business Value Game Cards, will lay a card face down representing his/her own estimate. • Everyone calls their cards simultaneously by turning them over (face up). People with high estimates and low estimates are given a soap box to offer their justification for their estimate and then discussion continues. • The justification has to be in respect to the aforementioned “Business Value” categories, often the value importance is also represented by the order: New Business, Up Sell, Retainment and Operational Efficiency. • Repeat the estimation process until a consensus is reached. • An egg timer is used to ensure that discussion is structured; the Moderator may at any point start over the egg timer and when it runs out all discussion must cease and a round of poker is played. 11 Back
- 12. * Source : Scruminc., Calculating Business Value, Agile 2014 Back 12