culture clash: agile cadence vs. business cadence
TRANSCRIPT
© 2014 Pivotal Product Management, LLC
Tonight’s Key Take-Aways
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• How jet fighter tactics apply to your business
• How to start shifting attitudes and practices toward business agility
• How to synchronize business and development cadence for competitive advantage
© 2014 Pivotal Product Management, LLC
Bad News: The rest of the organization isn’t so agile.
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How do you move toward business
agility in a world of annual planning?
© 2014 Pivotal Product Management, LLC
Change the Plan vs. Plan for Change
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Take shots at the annual target vs. execute OODA loops
© 2014 Pivotal Product Management, LLC
OODA Loops?
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Observe
Orient
Decide
Act
Learn more: “Certain to Win” by
Chet Richards
© 2014 Pivotal Product Management, LLC
What situations drive the need for agility?
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Kind of challenge
Problem Definition
Solution PlanningMethod
Results
Technical (Familiar)
Understood Proven Conventional Delivering results that are close to what was
planned.
Adaptive(New)
Requires learning
Requires learning
Adaptive Gaining evidence on which to base
subsequent actions and decisions.
© 2014 Pivotal Product Management, LLC
Plan for Change
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• Annual strategy review with quarterly planning, 5-quarters forward
• Use KPIs with percentage improvements instead of fixed goals
• Determine best use of discretionary budget
© 2014 Pivotal Product Management, LLC
Backlog Prioritization: Weighted Shortest Job First
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WSJF = User Value + Time Value + RR|OE* Value
Job Size
* RR|OE: Risk Reduction/Opportunity Enablement
© 2014 Pivotal Product Management, LLC
WSJF Cost of Delay Components
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• They prefer ‘this’ over ‘that’
• Revenue impact for the business
• Penalty potential on the business
USER VALUE: Relative value in the eyes of the customer
• Is there a fixed deadline (i.e. compliance)
• Will customers wait? or move to another solution?
• What is the effect on customer satisfaction?
TIME VALUE: How user value decays over time
• Reduce the risk of this or future delivery
• Is there value in the information we will receive?
• Enable new business opportunities?
RR|OE: What else does this do for our business?
© 2014 Pivotal Product Management, LLC
Backlog with WSJF Scoring
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Product Backlog
WSJF Scoring
User Value
Time Value RR|OE*
JobSize Score
Story ID Story
Backlog Priority Sprint Release
Acceptance Criteria
5 2 8 2 7.5 14
As a <user> I want to <do something> so I can <get benefit>. 1 3 v2.1
5 8 2 5 3 17
As a <user> I want to <do something> so I can <get benefit>. 2 3 v2.1
1 1 1 1 1 22
As a <user> I want to <do something> so I can <get benefit>. 3 3 v2.1
Scale for each parameter: 1, 2, 3, 5, 8, 13, 21 Done one column at a time, start by picking the smallest item and giving it a “1” (There must be
at least one “1” in each column!) Job Size is re-estimated for remaining work each time you re-prioritize (ignore sunk costs!) Score=(User Value + Time Value + RR|OE Value)/Job Size Highest number is the highest priority. RR|OE: Risk Reduction/Opportunity Enablement
© 2014 Pivotal Product Management, LLC
Approach Business Cases Iteratively: Lean Canvas
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Hypothesize and test each box
© 2014 Pivotal Product Management, LLC
Kill Aggressively; Ignore Sunk Costs
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Pro
ble
m Problem definition
Customers & Markets
Value Proposition So
luti
on
/Pro
toty
pe Solution
definition
Unique advantage
ChannelB
usi
nes
s V
alu
e Key metrics
Revenue streams
Cost structure P
rod
uct
ion
MV
P Launch
Drive adoption
Monitor Customer Satisfaction
Op
erat
e Enhance
Refine metrics
Manage life cycle
Incremental Funding and Go/No Go Decision Points
Submit to product council
IdeaAssign
PMApprove
Submit business
case
OptyAnalysis
Assign dev
teamApprove
Measure Product Planning Cycle Time
To verification
Design, Build Test
To Operations
Validation Gain valueLaunch
Value
Waste
Value
Waste
Efficiency = Total Value/
(Total Value+TotalWaste)
17© Pivotal Product Management, LLC
© 2014 Pivotal Product Management, LLC
Manage Stakeholder Commitments
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Q1 Q2 Q3 Q4 Q5
Eve
nts
,R
hyt
hm
sB
usi
ne
ss
Ob
ject
ive
s/Th
eme
s
Key
Fea
ture
sK
ey
Re
sou
rce
s,
De
liver
able
s &
D
ep
en
den
cies
COMMITTED LIKELY FORECAST
© 2014 Pivotal Product Management, LLC
In Summary…
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• Start building flexibility in “adaptive challenge” areas
• Use OODA loops annually, quarterly, and as needed
• Approach business cases incrementally
• Don’t let the lists get too long
• Spend wiselyYour Questions?
© 2014 Pivotal Product Management, LLC
Want to learn more?
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• Beyond Budgeting (Hope, Fraser)
• Certain To Win (Richards)
• Agile Software Requirements (Leffingwell)
• Agile Product Management classes – see me!
© 2014 Pivotal Product Management, LLC
Thank [email protected]
Linda Merrick, CPM, ACPM, CSPO, SPC
25+ years experience in software product management
AIPMM “Excellence in Product Management Education” award
winner
Instructor and advisor UW Software Product Management
Certificate Program
Pivotal Product
Management:
skills
assessment,
training,
consulting and
coaching for
greater product success.
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