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copyright 2012. Net Objectives, Inc. All Rights Reserved

Lean‐Agile Product Owner Business Responsibilities 11/14/2012

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Product OwnerBusiness Responsibilities

© Copyright Net Objectives, Inc. All Rights Reserved 2

ExpectationsRoleLean‐Agile experience?



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Always7%

Often13%

Sometimes16%

Rarely19%

Never Used45%

Source: Standish GroupStudy of 2000 projects at 1000 companies

Usage of Features and Functions in Typical System

WASTEand the

DELAY OF VALUE


Software developmentis inherently a

non‐deterministic process

This doesn’t mean it can’t be controlled; rather it can’t be managed completely through prediction. It means you must react and adapt.

The basis for Scrum and other Agile methods

creating the recipe vs. producing many meals!



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discover next increment

discover how to build it and implement it

realize it

BusinessValue

You cannot build the right thing if you have not discovered it first!”“


• Business Value (ROI)

• Priority & Sequence

• Business Value increments

• Acceptance / Validation Criteria

• How to build it

• What resources are needed

• How to implement it

Discover…



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There is no such thing as Agile.Alan Chedalawada

You are either more agile or less agile


Agility

Predictability

Business Value

and faster realization of

is where you have



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useless things

softwareby itself

technology solutionsby themselves


Agilityis about

Business Value Increments notDevelopment Cycles



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You need Agility for

SpeedFaster realization of Business Value

ValueGet more (business value) from current resources (capacity)

ProductivityHigher productivity of business value delivery (measurable)


Enterprise Agility

Enterprise Agility

BusinessBusiness

Management

ManagementTeamTeam

technicaltechnical



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BUSINESS AGILITYBUSINESS INCREMENTS

PRIORITY AND SEQUENCERELEASE PLANNING

BUSINESS AGILITYBUSINESS INCREMENTS

PRIORITY AND SEQUENCERELEASE PLANNING

Business


What the Business wants• Specify what is most important at any given point in time• Learn from what is already implemented • Learn from changing environment• Update and reprioritize requirements

Business AgilityDo not build what you do not need!

Business / Customers may know what is valuable…They may not know or understand everything involved in achieving it right at the beginning.



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Use Business Value Criteria and Weighting to develop an initial prioritized list based on business value

Business Value = Life-Cycle of Profit


Value Criteria



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Business Prioritization

Business Strategy3‐5 yrs

Business Strategy3‐5 yrs

BusinessDesign1‐3 yrs

BusinessDesign1‐3 yrs

Business Portfolio

annual

Book of Work

Business Portfolio

annual

Book of Work


Support

Customers

Shared Components

Shared Components

Product Related

Product Related

Development

CustomerProduct Managers

Business LeadersRegional Coordinators

Trainers & Educators

Product Champion(s)BusinessCapabilities

SoftwareRelease

SoftwareProduct

NewRequirements

ConsumptionConsumption

ConceptConcept

Lean-Agile



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BUSINESS DISCOVERY BUSINESS DELIVERYc h u n k i n g s l i c i n g

BusinessPriority

BusinessPlanning

Business Readiness

Ready to Pull

Iteration

0

IterativeDevelopment

IncrementalDeployment

Support & Feedback

AGILE provides framework and practices for producing increments of functionality

LEAN provides principles and practices which enable defining and prioritizing increments of highest business value

ITERATIVE AGILEITERATIVE AGILELEANLEAN


• Only work on something that has business value and you know how to achieve it

• Only start something you know you can finish (uninterrupted)

• Have a quick ‘Discovery’ process to enable the above 2 things

Lean Thinking



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w h a t i s “ f a s t e r ” ?

BUSINESS DISCOVERY BUSINESS DELIVERYc h u n k i n g s l i c i n g

BusinessPriority

BusinessPlanning

Business Readiness

Ready to Pull

Iteration

0

IterativeDevelopment

IncrementalDeployment

Support & Feedback

value stream


How else can we achieve faster realization of business value?



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First Release

InvestmentPeriod

PaybackPeriod

ProfitPeriod

Breakeven

Cas

h flo

w

Time

economics of responsiveness

Mark Denne and Jane Cleland‐Huang, Software by Numbers.


First Release

Invest-ment

Period

ProfitPeriod

Pay-back

Period

Cas

h flo

w

Time

Release 1 Net Return

staged releases



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ProfitPeriod

SecondRelease

Invest-ment

Period

Pay-back

Period


Cas

h flo

w

Time


staged releases


ProfitPeriod

Investment

Invest-ment

Period

Pay-back

Period

BreakevenPoint

Total Return

Cas

h flo

w

Time

staged releases



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Evolving the BusinessValue

Time


Evolving the System

Value

Time



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Program: Straight Through ProcessingValue Criteria

Improve Operations

Increase capacity for handling transactions

Customer Satisfaction

Shorten resolution time

Reduce Cost Reduce manual processing cost (headcount)

SynopsisCustomer transactions/requests/issues/problems are handled by process associates in the customer service area. The volume of transactions which need to be resolved on a daily basis is nearing the capacity of what can be handled within a 24 hour period; in addition, resolution time is longer due to the manual effort involved in resolving the problem.

The company is committed to investing in technology which would automate (no touch) current manual processes, handle more requests in a shorter amount of time, with a reduced number of process associates.

Investment

Budget $20M

Payback / ROI 1‐3 years


Business Backlog for STPProgram: No touch STP

High Low

Plan Setup Ent. Data Workflow Auto. STP

Bus Inc

Bus Inc

Bus Inc

Bus Inc

Bus Inc…

9 months

Plan Setup

Ent. Data

Workflow

Auto. STP

80% 10% 10%

6 months!

4 months

1 month of a dev team’s vs.

Realizing value 3 months sooner!



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Project‐based Business value increments

• Scope• Budget• Schedule

• Scope• Budget• Schedule

Defined

• Defined without priority

• Defined without priority

Require-ments

• Scope• Budget and schedule

fixed

• Scope• Budget and schedule

fixed

Limited evolution

• Build… and deploy at end

• Build… and deploy at end

Big bang deployment

• Highest value• Allocate budget• Highest value• Allocate budget Discovery

• Prioritized on Business Value

• Sequenced on ROI

• Prioritized on Business Value

• Sequenced on ROI

Require-ments

• Based on discovery

• Budget follows

• Based on discovery

• Budget follows

Constant evolution

• Build and deploy in increments

• Build and deploy in increments Increments


Business

Why is this

valuable?

Project portfolio

Budgets

Continual discovery of highest business value

Priority & sequence

Business planning

Value Stream owner

Realize business value

Incremental

Team

How to achieve

that value?

Speed of

analysis

build

validation

deployment

Continual improvement of standards

Iterative

IT & Business

What is best way to deliver that value ?

Technology

Discovery and development

Core engineering practices

System integrity

Boundaries to empower teams

Resolve impediments to speed, flow

Skills excellence

Optimize team performance

Iterative



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Business

Why is this

valuable?

Goals

Business Value criteria

Success metrics

Message map

Segments / audience

Product Vision

Budget

define

Team

How to achieve

that value?

MMFs prioritized by Business Value

Prioritized business features

Scenarios / Personas

Validation approach & acceptance criteria

submit to team

IT & Business

What is best way to deliver that value ?

Business capabilities

Workflows

Process models / maps

Scenarios

design


the

BUSINESS

SCOPEowns

VALUEand

and only the Business can start and stop work!



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Business Value

Business Value

BusinessBusiness

Management

ManagementTeamTeam

MAKE

VALUE

FLOW

technicaltechnical

Business Value The single focus for

PriorityProgressWork management



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Scope of responsibility

VPC

PRPC

IT

BAM

Portfolio Hubs (Application Areas) Pods/Teams

Book of Work

IT

H L

Image

H L


Business Product OwnerBusiness Product Owner

Portfolio

ValueTime boxTeam

Program

Project

Book of WorkRolling ReleasesLevel 1,2, & 3

Program BacklogReleases

Multiple Teams

Product BacklogIterations

Whole Team

Business SponsorBusiness Sponsor

Product OwnerProduct Owner

Scale / Scope

B U S I N E S S D I S C OV E R Y B U S I N E S S D E L I V E R Y

Bus Pri Bus Plan Bus Rdy RTP It

0 Iter Dev Inc Depl Spt & Fdbk



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Business Value Criteria

Prioritized & sized Product Backlog – business increments with technical requirements

Release Plan with Feature sequence

Cadence to Iteratively Produce & Incrementally Release

Synchronization – practices to align & focus the team(s)

Value Delivery Team(s) – all skills needed to produce value

Always Do!


Value Stream Owner

Realize highest business value

Optimal cycle time from idea to realization

Business Sponsor Realize business value and ROI

Assigns BPO, Business Value Priority and Budget

Business Product Owner

Prioritize & incrementally realize business value, ROI

Owns scope, timeline, and priority; assigns the PO

Product Owner (Release)

Owns scope, timeline, priority, and sequence to produce the assigned business value increment; Drives the Teams ‐continually prioritizes, defines and accepts what the Team(s) are producing.

Business PM Project administration and oversight on behalf of the Business

Business Lead/SME

Acceptance criteria

Validation and implementation of business value increment

BUSINESS ROLESTHE



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RO L E S AND R E S PON S I B I L I T I E S

Technology Delivery Manager

Flow: Continual, predictable, incremental delivery of quality solution(s), shorter cycle time

Application Development Mgr

Technical Integrity: Extensibility & maintainability

Architecture & design; Development standards

Whole Team

(Pod)

Produce and implement quality business value increment(s)

Continuous incremental improvement

Whole team includes all skills necessary to produce a business value increment

Core: Business analyst, technical lead, application developers, QA testers, production support

Lean‐Agile PM Visibility, transparency, coaching for Lean‐Agile Practices

Continuous incremental process improvement

MANAGEMENT & TEAMTHE


Pods ‐> Value Delivery Teams• Cross‐Functional

• Collective Ownership

• Self‐organization

Team Agility

ConsistencyValue FocusVisibilityTerminology and RolesLean‐Agile Principles, Practices, and MetricsVelocity and Business Value delivery capacity



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Decisions about... belong to...

Value, Scope, Timeline BPO/PO

Flow and Delivery TDM

Solution Integrity ADM

Produce and Improve Pod...everyone

Visibility and Process LAPM

RISK RESPONSIBILITIESBUS INES S D E L I V ERY


Often separated to different peopleBusiness peopleAnalysts and Testers



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Tasks

Right‐Sized Stories

User Stories

Feature/Epic

MMF

Project / Request

Prioritized

Decomposition

Ev

ol

ut

io

n

Visibility and Granularity

Busin

ess Focus

Pod Focus


Feature 1

Story StoryStory

Story

Story

Story

Story

Feature 2 Feature 3 Feature 4 Feature n

Story

Story

Story

Product Backlog

Iteration Backlog

RULE:Don’t let a story in, unless you know you can get it out!

High Low

Story

Task Task

Task Task



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Actual to Estimated Story Points Burn-Up

0

200

400

600

800

1000

1200

1400

1600

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Sprint

Sto

ry P

oin

ts

Actual Burn-Up Estimated Burn-Up Top Line

Project Topline – as of Iteration 4

1472

1460, Security Depository variance

Feb’07

MMF1 2012

complete

MMF2 2012 committed

Dec’12 Sep’08

MMF3 2012 Planned

138 point short fall

1465, MMF1 Elevation variance


Feature Burn Up

Feature Burn‐Up. Updated after each iteration. Defines the business priorities (sequence of the features) as well as the estimated size (story points), and completion status. Once the features is complete, its light blue bar can be changed to greento signify “done”.

MMF1 MMF2 MMF3



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Lean Enterprise

Lean Enterprise

BusinessBusiness

Management

ManagementTeamTeam

ASSESSMENTS

CONSULTINGTRAININGCOACHING

Product Portfolio ManagementLean for Executives

Lean ManagementProject Management

Kanban / Scrum ATDD / TDD / Design Patterns


Webinars:The Net Objectives Lean‐Agile Roadmap. Alan Shalloway. Oct. 4

Conferences:2nd Annual Net Objectives Lean Agile Conference. Seattle: Oct. 9

Courses: Lean‐Agile Project Management. Seattle: Oct. 23‐25

Questions

product owner webinar ac1 - netobjectivesonline.com · project portfolio budgets continual ... work...

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