Published on December 4, 2013
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Today’s Speaker Moderator: Hector Del Castillo, CPM, CPMM, PMP Presenter: Nick Coster Head of Training Services Brainmates Pty Limited firstname.lastname@example.org www.brainmates.com.au © AIPMM 2013 www.aipmm.com
Mind The Agile Business Gap www.brainmates.com.au
Nick Coster Co-Founder and Head of Training Services
We are a Product Management Consulting and Training business. We work with product teams across varied industries, companies and organisational sizes.
The Agile Business Gap Business Development
The Vision of an Agile Business is…
The Vision of an Agile Business is… Earlier realisation of business benefits by prioritising for business and market value.
The Vision of an Agile Business is… Delivery of smaller and more regular product features to the market.
The Vision of an Agile Business is… Increased business collaboration and transparency throughout the development.
The Vision of an Agile Business is… Reduction of risk through faster learning from the market.
… we have observed a repeating problem in many existing business where Agile is implemented.
Agile starts well…..
….. but then GAPS start to appear between the business and the development team.
These are Agile Business Gaps
What causes the Agile Business Gap?
Business Definition Page Text
Development Definition AGILE
Traditional Product Development Idea Business Case Design Build Market Launch 27
Traditional Product Development Idea Business Case Design Build Market Fit High Low Likelihood of Market Fit diminishes over time Time Market Launch 28
Agile methods are introduced to deliver better products to market faster. 29
Agile Product Development Daily Work User Story User Story User Story Sprint 2-4 weeks User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog Sprint Backlog Sprint Tasks Sprint Release Marketable Product
But when a development team “Goes Agile” other things break. Why?
Agile Product Development Idea The Product Build is only one stage of many required for successful Product Delivery Business Case Design Build Market Launch 32
Agile Product Development Idea Business Case Design Build The impacts of introducing Agile will be felt throughout the process… Market Launch 33
The Vision of an Agile Business is… ?!
Gap 1: Product Management Resource Gap
Agile Product Development Idea Business Case Design Build Market Launch 36
In an Agile team there is a Product Owner
But where do “Product Owners” come from?
By default the Agile team turns to the Product Manager…
IMPACT: When a Product Manager also acts as the Agile Product Owner, both the product and the Agile project suffers.
Tip 1: a) Resource a dedicated Agile Product Owner role. b) The Product Manager and the Agile Product Owner work hand in hand to manage the product delivery.
Make it clear! Business “Product Owner” ≠ Agile “Product Owner”
Business “Product Owner”: Responsible for Product Profit and Loss $$
Agile Product Owner: Responsible for prioritisation of user stories to increase customer and business value.
Outcome: Appropriate Product Owner resourcing allows for better communication and delivery through job specialisation.
Gap 2: Agile Product Management Gap
Agile Product Development Idea Business Case Design Build Market Launch 48
Key interface is the Product Backlog. Daily Work User Story User Story User Story Sprint 2-4 weeks User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog Sprint Backlog Sprint Tasks Sprint Release Marketable Product
User Story User Story The Product Backlog is a prioritised list of User Stories. User Story User Story User Story User Story User Story User Story User Story User Story User Story User Story Product Backlog But where do User Stories come from?
Product Manager converts high level Business Case objectives into more granular requirements.
Signoffs and Approvals These documents need to be “complete” before they are signed off.
IMPACT: With no changes to the signoff and approval stages the benefits of an Agile team are wasted.
Tip 2 Develop requirements in “Discovery Sprints” of the same length as Agile team Sprints. Signoffs at the end of each Sprint.
Highest Business Value Prioritise Business Case outcomes by market segment value. Segment A Segment B Segment C Segment D Lowest Business Value
For the highest value segment, storyboard scenarios (or “epics”) Highest Business Value Scenario A1 Highest Business Value Scenario A2 Segment A Scenario A1 Scenario A2 Scenario A3 Scenario A4 Scenario A4 Scenario A3 Lowest Business Value
Finally, break the scenario into smaller tasks or User Stories Highest Business Value Segment A Scenario A1 User Story A1-X User Story A1-Y User Story A1-Z Lowest Business Value
Highest Business Value Segment A Product Backlog prioritised by business value and testable outcomes. Scenario A1 User Story A1-X User Story A1-Y User Story A1-Z Segment B Scenario B2 User Story B2-X User Story B2-Y User Story B2-Z Segment A Scenario 2 User Story A2-X User Story A2-Y User Story A2-Z Lowest Business Value
Outcome: Alignment of sprint cycles delivers regular small parts of Business value with the traditional process.
Gap 3: Business Case Gap
Agile Product Development Idea Business Case Design Build Market Launch 61
Business Case funding is for projects, NOT continuous delivery of a product in the market. Projects Continuous Product Delivery
Established Organisations Project Focused Funding. Need to know project costs before project starts. Want to spend as Capital Expenditure for accounting.
IMPACT: It is more difficult to get projects funded when the costs are so “Flexible”.
Tip 3: a) Estimate the full cost of a single sprint. b) Estimate the # Sprints required for a market release. This limits both costs and time of the project and helps clarify scope.
Outcome: Simplifies business case costing. Smaller projects, more often embraces faster learning from the market.
Is your Business Agile?
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