copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
1
Product OwnerBusiness Responsibilities
© Copyright Net Objectives, Inc. All Rights Reserved 2
ExpectationsRoleLean‐Agile experience?
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
2
© Copyright Net Objectives, Inc. All Rights Reserved 3
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
© Copyright Net Objectives, Inc. All Rights Reserved 4
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!
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
3
© Copyright Net Objectives, Inc. All Rights Reserved 5
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!”“
© Copyright Net Objectives, Inc. All Rights Reserved 6
• Business Value (ROI)
• Priority & Sequence
• Business Value increments
• Acceptance / Validation Criteria
• How to build it
• What resources are needed
• How to implement it
Discover…
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
4
© Copyright Net Objectives, Inc. All Rights Reserved 7
There is no such thing as Agile.Alan Chedalawada
You are either more agile or less agile
© Copyright Net Objectives, Inc. All Rights Reserved 8
Agility
Predictability
Business Value
and faster realization of
is where you have
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
5
© Copyright Net Objectives, Inc. All Rights Reserved 9
useless things
softwareby itself
technology solutionsby themselves
© Copyright Net Objectives, Inc. All Rights Reserved 10
Agilityis about
Business Value Increments notDevelopment Cycles
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
6
© Copyright Net Objectives, Inc. All Rights Reserved 11
You need Agility for
SpeedFaster realization of Business Value
ValueGet more (business value) from current resources (capacity)
ProductivityHigher productivity of business value delivery (measurable)
© Copyright Net Objectives, Inc. All Rights Reserved 12
Enterprise Agility
Enterprise Agility
BusinessBusiness
Management
ManagementTeamTeam
technicaltechnical
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
7
© Copyright Net Objectives, Inc. All Rights Reserved 13
BUSINESS AGILITYBUSINESS INCREMENTS
PRIORITY AND SEQUENCERELEASE PLANNING
BUSINESS AGILITYBUSINESS INCREMENTS
PRIORITY AND SEQUENCERELEASE PLANNING
Business
© Copyright Net Objectives, Inc. All Rights Reserved 14
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.
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
8
© Copyright Net Objectives, Inc. All Rights Reserved 15
Use Business Value Criteria and Weighting to develop an initial prioritized list based on business value
Business Value = Life-Cycle of Profit
© Copyright Net Objectives, Inc. All Rights Reserved 16
Value Criteria
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
9
© Copyright Net Objectives, Inc. All Rights Reserved 17
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
© Copyright Net Objectives, Inc. All Rights Reserved 18
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
10
© Copyright Net Objectives, Inc. All Rights Reserved 19
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
© Copyright Net Objectives, Inc. All Rights Reserved 20
• 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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
11
© Copyright Net Objectives, Inc. All Rights Reserved 21
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
© Copyright Net Objectives, Inc. All Rights Reserved 22
How else can we achieve faster realization of business value?
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
12
© Copyright Net Objectives, Inc. All Rights Reserved 23
First Release
InvestmentPeriod
PaybackPeriod
ProfitPeriod
Breakeven
Cas
h flo
w
Time
economics of responsiveness
Mark Denne and Jane Cleland‐Huang, Software by Numbers.
© Copyright Net Objectives, Inc. All Rights Reserved 24
First Release
Invest-ment
Period
ProfitPeriod
Pay-back
Period
Cas
h flo
w
Time
Release 1 Net Return
staged releases
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
13
© Copyright Net Objectives, Inc. All Rights Reserved 25
ProfitPeriod
SecondRelease
Invest-ment
Period
Pay-back
Period
Release 2 Net Return
Cas
h flo
w
Time
Release 1 Net Return
staged releases
© Copyright Net Objectives, Inc. All Rights Reserved 26
ProfitPeriod
Investment
Invest-ment
Period
Pay-back
Period
BreakevenPoint
Total Return
Cas
h flo
w
Time
staged releases
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
14
© Copyright Net Objectives, Inc. All Rights Reserved 27
Evolving the BusinessValue
Time
© Copyright Net Objectives, Inc. All Rights Reserved 28
Evolving the System
Value
Time
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
15
© Copyright Net Objectives, Inc. All Rights Reserved 29
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
© Copyright Net Objectives, Inc. All Rights Reserved 30
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!
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
16
© Copyright Net Objectives, Inc. All Rights Reserved 31
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
© Copyright Net Objectives, Inc. All Rights Reserved 32
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
17
© Copyright Net Objectives, Inc. All Rights Reserved 33
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
© Copyright Net Objectives, Inc. All Rights Reserved 34
the
BUSINESS
SCOPEowns
VALUEand
and only the Business can start and stop work!
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
18
© Copyright Net Objectives, Inc. All Rights Reserved 35
© Copyright Net Objectives, Inc. All Rights Reserved 36
Business Value
Business Value
BusinessBusiness
Management
ManagementTeamTeam
MAKE
VALUE
FLOW
technicaltechnical
Business Value The single focus for
PriorityProgressWork management
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
19
© Copyright Net Objectives, Inc. All Rights Reserved 37
Scope of responsibility
VPC
PRPC
IT
BAM
Portfolio Hubs (Application Areas) Pods/Teams
Book of Work
IT
H L
Image
H L
© Copyright Net Objectives, Inc. All Rights Reserved 38
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
20
© Copyright Net Objectives, Inc. All Rights Reserved 39
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!
© Copyright Net Objectives, Inc. All Rights Reserved 40
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
21
© Copyright Net Objectives, Inc. All Rights Reserved 41
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
© Copyright Net Objectives, Inc. All Rights Reserved 42
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
22
© Copyright Net Objectives, Inc. All Rights Reserved 43
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
© Copyright Net Objectives, Inc. All Rights Reserved 44
Often separated to different peopleBusiness peopleAnalysts and Testers
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
23
© Copyright Net Objectives, Inc. All Rights Reserved 45
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
© Copyright Net Objectives, Inc. All Rights Reserved 46
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
24
© Copyright Net Objectives, Inc. All Rights Reserved 47
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
© Copyright Net Objectives, Inc. All Rights Reserved 48
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
copyright 2012. Net Objectives, Inc. All Rights Reserved
Lean‐Agile Product Owner Business Responsibilities 11/14/2012
25
Lean Enterprise
Lean Enterprise
BusinessBusiness
Management
ManagementTeamTeam
ASSESSMENTS
CONSULTINGTRAININGCOACHING
Product Portfolio ManagementLean for Executives
Lean ManagementProject Management
Kanban / Scrum ATDD / TDD / Design Patterns
© Copyright Net Objectives, Inc. All Rights Reserved 50
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