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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 [email protected]
