Answer the Call: Help Product Owners Define and Prioritize Requirements So many decisions, more time...

Answer the Call: Help Product Owners Define and Prioritize

Requirements

So many decisions, more time than we

thought

Kent J. McDonaldBusiness Systems Coach, Knowledge Bridge Partners

Founding Partner, Accelinnova

So many decisions, more time than we

thought

Overview

Problems Value Models Today Why It Doesn’t Work Considerations Purpose New Models Example

The Problem(s)

“The Business” Expects Us to Do “The Right Things”

Methodologies Tell Us How to Do Things Right

How Do We Do This?

Who Decides?

And When?

Features and Functions

Never Used 45%

Rarely Used 19%

Sometimes 16%

Often 13%Always 7%

Always or Often Used: 20%

Never or Rarely Used: 64%

Standish Group Study, reported by CEO Jim Johnson, XP2002

Value Models

Value Model

Business Value

CostsCosts

Benefits

How Do You Determine Costs?

How Do You Determine Benefits?

Costs

Costs Associated with the Team

Hardware Costs Software Licensing

Costs Vendor Service Costs Impact to Operations

(Extra Staff)

Benefits

Increased Revenue Cost Reductions Opportunity Costs Avoided Fee and Penalty Avoidance Support of Other Initiatives Reputation Improved Customer

Satisfaction

Value Models

Value Model

Business Value

CostsCosts

Benefits

This Is Hard….

Measuring Business Value

Many Different Approaches Cash Flow Net Present Value Internal Rate of Return Return on Investment

These Can All Be Gamed Uncertainty Hard to Factor Other Factors Impact

Value

Considerations Impact Value

Value Model

Considerations

Business Value

CostsCosts

Benefits

Considerations

Things That Could Impact Value:

RisksRisks

AssumptionsAssumptions

ConstraintsConstraints

Risks

Technical Difficulties Changes in Market

Conditions Team Makeup and

Skill Set Domain Knowledge

Assumptions

Availability of Team Members

Market Demand for Product

Team Velocity Understanding of

Domain Knowledge

Constraints

Market Window External Events Compliance Dates Budget Limit Team Members Technical

Architecture “Non Functional”

Requirements

Collaboration Process

Agree to Purpose of Exercise

Brain Write Stick Items on a Wall Group Like Items

Together Provide Headlines for

Groupings Vote for Priority

Considerations Impact Value

That Didn’t Help Much…

How Do You Justify a Project That Does Not Provide Positive Business Value?

Value Model

Considerations

Business Value

CostsCosts

Benefits

It’s a “Strategic Project”

Value Model

Value Model

Considerations

Purpose

Considerations

Cos

tsC

osts

Ben

efits

Business Value

Project Purpose

Optimist’s View:

What Job Is the What Job Is the Project Trying to Project Trying to

Get Done?Get Done?

Pessimist’s View:

What Problem Is What Problem Is the Project Trying the Project Trying

to Solve?to Solve?

The Key Is Common Understanding.The Key Is Common Understanding.

Purpose

Tools to Help

Discover Purpose: Purpose-Based

Alignment Model The 5 Questions Elevator Statement Innovation Game

Strategic Development

Mission Vision Values

Strategic Intent ~ Strategy ~ Purpose

Long-Range Goals

Annual Objectives

Action Plans (what, who, when)

Individual Business ObjectivesTac

tica

lS

trat

egic

SCO / 5Q

Strategic Development

Mission Vision Values

Strategic Intent ~ Strategy ~ Purpose

Long-Range Goals

Annual Objectives

Action Plans (what, who, when)

Individual Business ObjectivesTac

tica

lS

trat

egic

SCO / 5Q

Start Here

Strategic Intent

Cost Leadership

Best Customer Solution

Competitive Position

StrategicScope

Cost Differentiation

Broad

Narrow

Product Leadership

Where is Your Organization ?

Defining Strategy

Answer These Questions:1. Whom do we serve and what do they want and

need most?2. What services do we provide to help them?3. How do we know we’re doing a good job?4. What is the best way to provide these services?5. How should we organize to deliver these

services?

Identifies Strategic Decision FiltersStrategic Decision Filters

Purpose-Based Alignment

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiating

ParityWho Cares?

Partner

Purpose Does Not Equal PriorityPurpose Does Not Equal Priority

Purpose Statement

Stating the Purpose:Your Elevator Statement

For Products and Services:

Who Is It For? What Do They Need? Key Benefit Is? Why Is It Different Than the

Competition?

Purpose Statement

Your Elevator Statement For Business Problems:

What’s the Problem? Who Does It Affect? What’s the Impact? What’s a Successful

Solution?

Purpose as a Product Box

Product BoxAn Innovation Game

by Luke Hohmann Build Imaginary

Packaging for Product Customers Identify the

Problems They Want Solved

Identifies Expected Benefits

http://www.jonathanboutelle.com/mt/archives/2005/11/offline_gamelik.html

Example: Health Insurance

Health Insurance Example:

Create a 24x7 resource people could call to get health care questions answered and get direction to sources for care.

Example: Health InsuranceIntent and Filters

Strategic Intent:Strategic Intent:

Best Customer Solution

Decision Filter:Decision Filter:

Does this initiative help to improve health care value for our stakeholders?

Cost Leadership

Best Customer Solution

Competitive Position

StrategicScope

Cost Differentiation

Broad

Narrow

Product Leadership

Example: Health InsurancePurpose Alignment

MarketDifferentiating

High

Low

Mission CriticalLow High

Healthcare analyticsMember focus

Claims ProcessingEnrollment

Customer Service

DisabilityInsurance

PharmacyDental

Example: Health InsurancePurpose StatementsWhat’s the Problem?

Healthcare industry is difficult to navigateWho Does It Affect?

Members What’s the Impact?

Confused about appropriate place to receive care, resulting in needless expenses

What’s a Successful Solution?Provides members a single, trusted point of contact to get health and wellness and urgent care questions answered

Example: Health Insurance Purpose

Provide members a single point of entry to heath insurer’s health and wellness resources.

Answer member’s urgent care questions

Example: Health Insurance Costs

Software Development Costs

Vendor Development Costs

Ongoing Operational Costs

Example: Health Insurance Benefits

Consolidated Member Point of Contact

Cost Avoidance Gather Clinical

Information

Example: Health Insurance Considerations

Vendor Size Integration with

Vendor Systems Date Available

Commitments to Customers

Dependency on Other Project to Supply Data

Example: Health InsuranceIs Business Value Defined?

Costs >> Benefits Increased Information

About Members

Customer Satisfaction More Appropriate

Care Delivery Better Informed

Members

Example

Do We Know What the Right Stuff Is?

Do We Know What to Build First?

Who Decides?

So Why Do We Care About Business Value?

It’s All About Decisions

Value Model?

Value Model

Considerations

Purpose

Considerations

Cos

tsC

osts

Ben

efits

Business Value

Value Model!

Value Model

Considerations

Purpose

Considerations

Cos

tsC

osts

Ben

efits

What do we do?

When do we do it?

When do we

decide?

What Do We Do?

Is Analysis a Lost Art? Do I Understand the Problem? Do I Understand the Guidelines For a Solution? Have I Consistently Described the Solution? Can I Verify the Solution?

Doing the Right Stuff

Tie Project Purpose to Strategy

Factor in Considerations

Utilize Cost/Benefit Information

Tie Purpose to Strategy

What Is the Project Purpose?What Is the Project Purpose?

Does the Purpose Align with Does the Purpose Align with Decision Filters?Decision Filters? Yes – Continue! No – Stop!Stop! “What Decision Filters?” –

Go Back and Define Some.

Does purpose

meet decision filters?

Continue

What Decision Filters?

No

Yes

Factor In Considerations

A Business Driven Deadline?

Impact on Other Projects?

Impacted by Other Projects?

Availability of Key People?

Impact of Regulations?

Utilize Cost/Benefit Analysis

Adjust for Considerations

Use Consistent Analysis Between Projects

Understand Uncertainty in Estimates

Selecting The “Right Requirements”

Look at the RightRight Level Put the AnalysisAnalysis Back

In Business Analysis Do the Right Stuff What Just MeetsJust Meets

Purpose?

Requirements Levels

Why Do This Project?

What Do Users Want?

What Do We Build?

The Software Requirements Memory Jogger

by Ellen Gottesdiener

This Is the This Is the Right LevelRight Level

Business Requirements

User Requirements

Software Requirements

Minimum Necessary Set

Minimum Features to Create Value Minimum Features to Replace Existing

System Base on Project

Purpose and

Considerations

When Do We Do It?

Prioritizing Features

Determine Relative Value

Priority = Order Revisions to Order

Based on Technical Considerations

Relative Value of Feature

Relative Benefit Relative Cost

Benefit Measured in Benefit Points

Cost Measured in Story Points

Resolve Outliers

“Value” in the Extreme

Team Discusses Feature

Each Member Indicates Numerical Estimate

Discuss Outliers Outliers Indicate

Assumptions, Considerations

Change Feature Order Based on Considerations

Move Up Features That Provide Information Move Down Features That Depend on Others Group Features Together That Have Synergy

When Do We Decide?

Real Options

Deciding Is Not a Once in a Lifetime Event

Knowledge Improves Business Conditions

Change Project Conditions

Change Do You Know Why

You Are Deciding Early?

Decide Who Should Decide

Who Makes The Decision?

Who Makes Sure It Is Enacted?

Understand Before Making Decisions

Decision Leader NOTNOT For Purposes Of

Placing Blame

“Roles” = Who Decides?

Many Roles for “Business” Stakeholders Customers Product Owners Users

Need Input From Multiple People

Need To Know Who Ultimately Decides

Some Things to Remember

Value Impacted By Purpose And Considerations

Business Value Is All About Decisions

Decide Wisely Decide Who Should

Decide Wisely

Questions?

References

Stand Back and Deliver, co-author, published by Addison Wesley, due out late 2008 or early 2009

The Software Requirements Memory Jogger, Ellen Gottesdiener

Innovation Games, Luke Hohmann

Contact

Kent J McDonald: www.knowledgebridgepartners.com www.accelinnova.com 515.229.6929 kent@knowledgebridgepartners.com