Deciding “What” to Build

Deciding “What” to Build

The Agile EnterpriseStrategically Aligned, Throughput Focused, Human Powered “Dennis Stevens helped us develop a structured approach that connected customer value to execution. He helped us deliver over $200 million in value to our customers.” -- Ric Merrifield, Microsoft Corporation • PMI Agile LIG • PMI Agile CoP • New PMI Agile offering Feb 24 “Dennis Stevens helped us align business analysis, architecture, development, QA, support and implementation. He was an advocate for the success of our business" -- Rob Andes, CTO, John Deere Connecting the Strategy and ExecutionHBR: The Next Revolution in Productivity Agile in the Enterprise Core Team Member “In a time growth and change, Dennis Stevens helped us identify and develop the capabilities needed to deliver technology that was critical to our success." -- Mike Rouse, COO, Security First Network Bank Exploiting Agile Development Cutter: Rethinking the Agile Enterprise Agile Business Analysis Agile Extension to the BABOK

Do you see it?

Now you see it!

The “How” TrapA human condition • The Fosbury Flop • Sending a fax isn’t ever “what” someone is doing

With a How FocusEffort Expands Faster then Value #1. Undifferentiated Scope #2. Over analyze and over design #3. Delivery is over engineered

#1 Undifferentiated Scope

Increase or protect revenue, decrease or prevent costs, increase service, maintain compliance or prepare for the future in alignment with the business strategy What is Business Value?

Business Value Goal Model Example Tire Manufacturer Survive by re-establishing credibility Business Value Goal Fix the tires Improve PR Repair distributor relationships Address morale Settle lawsuits Focusing Objectives Revenue Expenses Production levels Market share Customer Satisfaction Standard Objectives

What the customer perceives as important and is willing to pay for. What is Customer Value?

high Starbucks Emphasis low quality speed convenience fashion selection ambiance price location serviceexpertise factors of customer experience Customer Value Map Example Explicit performance gap We are here

Describe the product as a set of outcomes – or capabilities. Jump Over Bar Notify Customer Verb - Noun

Explicit Performance Gaps Business Value Customer Value AnotherOutcome Risk Risk Business Risk Technology Risk Organizational Risk Market Risk KEY Low Performing Medium Performing High Performing High Value Medium Value Low Value High Risk Moderate Risk Low Risk

Have a road map

Specific Initiative To Achieve a Specific Outcome At the end of the effort – that outcome should be recognizable AnotherOutcome KEY High Value Medium Value Low Value Low Performing Medium Performing High Performing High Risk Moderate Risk Low Risk

When the performance goal is achieved We don’t need to invest here anymore AnotherOutcome KEY High Value Medium Value Low Value Low Performing Medium Performing High Performing High Risk Moderate Risk Low Risk

Revisit the road map frequently • If the outcome isn’t realized – either your understanding of the model is wrong – or you didn’t do a good job with the initiative • When lost it the forest, if the map doesn’t agree with the terrain, in all cases believe the terrain

#1 Undifferentiated Scope Tips • Articulate business value • Articulate customer value • Make value explicit • Have a road map • Revisit the road map frequently

#2 Over Analyze and Over Design

Start with the simplest thing that might possibly work

Reduce risk early – focus on next highest increment of value Trim the tail 2,500 Knowledge Growing (risk reduction) Value 2,000 1,500 $ in k 1,000 500 Value Cost

Reduce risk early – focus on next highest increment of value Discovery • An increment whose purpose is to prove a technology or gather feedback. May be a technology proof or a prototype. • Prove it before investing more then needed

Reduce risk early – focus on next highest increment of value Goat Path • A story that defines the absolute minimum required to walk a happy path of an activity from one end to the other. Can include supporting technical stories. When we need rapid feedback to address business risk

Reduce risk early – focus on next highest increment of value Gravel Road • A story that is robust enough to cover multiple options and paths but whose implementation can be broken by extraordinary uses. Paved Road • A story that is solid and can withstand high capacity and resilient to frequent use. Super Highway • A story with lots of bells and whistles that is tightly integrated into other uses, intuitive and robustly functional. Allows trimming the tail Do we always need the Super Highway?

#2 Over analyze and over design Tips • Start with the simplest thing that might possibly work • Reduce risk early with as little investment as possible • Be focused on a small specific objectives

Over Engineered

#3 Over Engineered • Until something is delivered it is all untested assumptions • Strategic decisions become concrete at the implementation level – make sure delivery is focused on value

#3 Over Engineered • The runway is more important than the road map • Make sure the right context (architecture, value, schedule, costs) exists for delivery • Make work ready so the next most important thing can be worked on

#3. Solutions are over engineered Tips • Establish context and deliver early and frequently • Make work ready so the next most important thing can be worked on

Tips #1. Undifferentiated Scope • Articulate business value • Articulate customer value • Make value explicit • Have a road-map and test your assumptions #2. Over analyze and over design • Start with the simplest thing that might possibly work • Reduce risk early with as little investment as possible • Be focused on a small specific objectives #3. Solutions are over engineered • Establish context and deliver early and frequently • Make work ready so the next most important thing can be worked on

Questions Dennis Stevens President, Synaptus Enabling the Agile Enterprise @dennisstevens www.synaptus.com www.dennisstevens.com

Deciding “What” to Build