@dennisstevens

Deciding “What” to Build

@dennisstevens

Connecting the Strategy and ExecutionHBR: The Next Revolution in Productivity

The Agile EnterpriseStrategically Aligned, Throughput Focused, Human Powered

Agile in the EnterpriseCore Team Member

Exploiting Agile DevelopmentCutter: Rethinking the Agile Enterprise

Agile Business AnalysisAgile Extension to the BABOK

“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

“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

“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

@dennisstevens

Do you see it?

@dennisstevens

Now you see it!

@dennisstevens

The “How” TrapA human condition

• The Fosbury Flop

• Sending a fax isn’t ever “what” someone is doing

@dennisstevens

With a How FocusEffort Expands Faster then Value

#1. Undifferentiated Scope

#2. Over analyze and over design

#3. Delivery is over engineered

@dennisstevens

#1 UNDIFFERENTIATED SCOPE

@dennisstevens

What is Business Value?

Increase or protect revenue, decrease or prevent costs, increase service, maintain compliance or prepare for the

future in alignment with the business strategy

@dennisstevens

Business Value Goal Model Example

Survive by re-establishing

credibility

Fix the tires Settle lawsuitsAddress morale

Repair distributor

relationshipsImprove PR

Revenue Customer SatisfactionMarket shareProduction

levelsExpenses

Focusing Objectives

Standard Objectives

Business Value Goal

Tire Manufacturer

@dennisstevens

What is Customer Value?

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

@dennisstevens

Customer Value Map Example

Em

ph

asis

quality

high

low

factors of customer experience

speed convenience fashion selection ambiance price location serviceexpertise

Starbucks

Explicit performance gap

We are here

@dennisstevens

Verb - NounJump Over Bar

Notify Customer

Describe the product as a set of outcomes – or capabilities.

@dennisstevens

AnotherOutcome

RiskBusiness RiskTechnology RiskOrganizational RiskMarket Risk

Risk

Explicit Performance

Gaps

Customer Value

High Value

Medium Value

Low Value

KEY

Business Value

Low Performing

Medium Performing

High Performing

High Risk

Moderate Risk

Low Risk

@dennisstevens

1.0 Employee Vehicle Program

1.1 Develop Products and Services

1.1.1 Product/Service Management

Determine Purchase Price

1.2 Deliver Products and Services

1.2.1 Capture Product Requirements

Configure Vehicle for Purchase

1.2.2 Procurement/Secure Supply

Order Vehicle

1.2.3 Produce Product

Process VehicleMove Vehicle to Delivery Location

Associate Pickup of Evaluation Unit

1.2.4 Plan Employee Vehicle Program

Establish Vehicle Types Available

for Evaluation Unit

Establish Evaluation Unit

Deduction Amount

1.2.5 Manage Inventory

Manage Evaluation Unit

Inventory

1.2.6 Coordinate and Perform Service

1.2.6.1 Coordinate Employee Vehicle Program

Assign Vehicle to Evaluation Unit

Request

Select Vehicle for Evaluation

Assign Vehicle to Purchase Request

Place Evaluation Unit In Service

Return of Evaluation Unit

Remove Evaluation Unit

from Service

Change an Associate Vehicle Purchase Request

1.2.6.2 Manage Vehicle Assets

Dispose of Company Owned

Vehicle

Inspection of Evaluation Unit

Place Vehicle in Dealer Inventory

Validate Vehicle Availability

Check Vehicle Status By Associate

1.2.7 Track Delivery Performance

Track Vehicle Status

1.2.8 Delivery Accounting

Conduct Vehicle-Related Financial Transactions with

Dealer

Manage Accounting

Entries for Vehicle Inventory

1.3 Plan and Manage Enterprise

1.3.1 Human Resources

1.3.1.1 Employee Vehicle Program

Authenticate Associate

Validate Associate Eligibility

Complete Evaluation Unit

Survey

Approve Evaluation Unit

Request

Complete Evaluation Unit

Request

Approve Associate Vehicle Purchase Request

Complete Associate Vehicle Purchase Request

Cancel Associate Vehicle Purchase

Request

Implement Payroll Deduction for

Evaluation Unit

Have a road map

@dennisstevens

AnotherOutcome

Specific Initiative To Achieve a Specific Outcome

At the end of the effort – that outcome should be recognizable

High Value

Medium Value

Low Value

Low Performing

Medium Performing

High Performing

High Risk

Moderate Risk

Low Risk

KEY

@dennisstevens

AnotherOutcome

High Value

Medium Value

Low Value

Low Performing

Medium Performing

High Performing

High Risk

Moderate Risk

Low Risk

KEY

When the performance goal is achieved

We don’t need to invest here anymore

@dennisstevens

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

@dennisstevens

#1 Undifferentiated Scope

Tips• Articulate business value• Articulate customer value• Make value explicit• Have a road map• Revisit the road map frequently

@dennisstevens

#2 OVER ANALYZE AND OVER DESIGN

@dennisstevens

Start with the simplest thing that might possibly work

@dennisstevens

Reduce risk early – focus on next highest increment of value

ValueKnowledge Growing (risk reduction)

500

1,000

1,500

2,000

2,500

Cost Value

$ in

k

Trim the tail

@dennisstevens

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

@dennisstevens

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

@dennisstevens

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?

Reduce risk early – focus on next highest increment of value

@dennisstevens

#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

@dennisstevens

OVER ENGINEERED

@dennisstevens

#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

@dennisstevens

#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

@dennisstevens

#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

@dennisstevens

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 StevensPresident, SynaptusEnabling the Agile Enterprise@dennisstevenswww.synaptus.comwww.dennisstevens.com