Role of the Product Owner And the Development of Minimal Marketable Features
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1 Role of the Product Owner And the Development of Minimal Marketable Features
2 Product Portfolio Management Lean for Executives Business technical Team process Kanban / Scrum ATDD / TDD / Design Patterns Lean Enterprise Manage ment Lean Management Project Management ASSESSMENTS CONSULTING TRAINING COACHING
3 Copyright 2012 Net Objectives, Inc. All Rights Reserved 3
4 Role of Business Product Owner Solid business decision making capability Ability to manage dependencies and risks Ability to prioritize and sequence business needs Deep understanding of what the customer needs Good intuition of the development team's capabilities Unafraid to set direction for the product without telling the team how to develop it Copyright 2012 Net Objectives, Inc. All Rights Reserved 4
5 deliver quickly Create a Minimum Viable Product Copyright 2012 Net Objectives, Inc. All Rights Reserved 5
6 Cash flow conomics of responsiveness Investment Period Payback Period Profit Period Time Breakeven First Release Mark Denne and Jane Cleland-Huang, Software by Numbers. Copyright 2012 Net Objectives, Inc. All Rights Reserved from Denne and Cleland-Huang. Software by Numbers 6
7 Staged Releases Cash flow Investment Period Payback Period Profit Period Release 1 Net Return Time First Release Copyright 2012 Net Objectives, Inc. All Rights Reserved 7
8 Staged Releases Cash flow Profit Period Investment Period Payback Period Release 1 Net Return Release 2 Net Return Time Second Release Copyright 2012 Net Objectives, Inc. All Rights Reserved 8
9 taged releases Cash flow Profit Period Investment Period Payback Period Total Return Time Breakeven Point Investment Copyright 2012 Net Objectives, Inc. All Rights Reserved 9
10 ncreased profit Cash flow Staged Releases Breakeven Single Release Time First Release Copyright 2012 Net Objectives, Inc. All Rights Reserved 10
11 Cash flow hen competition is intense Staged Releases Breakeven Time Single Release First Release Copyright 2012 Net Objectives, Inc. All Rights Reserved 11 10
12 aste: Building What You Do ot Need Usage of Features and Functions in Typical System Always 7% Often 13% Never Used 45% Sometimes 16% Rarely 19% Source: Standish Group Study of 2000 projects at 1000 companies Copyright 2012 Net Objectives, Inc. All Rights Reserved _1 12
13 Learning in the market Learning what s needed Learning what s not needed Learning how to build it quickly Learning how to build it so it can extended validate learning Copyright 2012 Net Objectives, Inc. All Rights Reserved 13
14 invite customers to be part of the process Copyright 2012 Net Objectives, Inc. All Rights Reserved 14
15 Build it Discover what customer wants software product development Discover how to build it Copyright 2012 Net Objectives, Inc. All Rights Reserved 15
16 standard development sequence do the most important half first More important Less important Copyright 2012 Net Objectives, Inc. All Rights Reserved 16
17 Copyright 2012 Net Objectives, Inc. All Rights Reserved 17
18 standard development sequence do the most important 25% first More important Less important Copyright 2012 Net Objectives, Inc. All Rights Reserved 18
19 Deliver in Stages when possible focusing on the known, valuable features gives greater certainty produces greater value lowers risk of mis-building and over-building Copyright 2012 Net Objectives, Inc. All Rights Reserved 19
20 Project-based Business Value-based Defined Scope Budget Schedule Highest value Allocate budget Discovery Defined without priority Prioritized on Business Value Sequenced on ROI Requirements Requirements Limited evolution Scope Budget and schedule fixed Based on discovery Budget follows Constant evolution Big bang deployment Build & deploy at end Build & deploy increments Increments Copyright 2012 Net Objectives, Inc. All Rights Reserved 20
21 Business Evolution Verses System Evolution Discussion Do your projects get defined with scope, schedule, and budget predetermined? What issues come up during the project? What happens if a preset date cannot be met? Define the problem What are the root causes? Copyright 2012 Net Objectives, Inc. All Rights Reserved 21
22 Business Evolution Verses System Evolution Apply the Agile Principles! Holistic Value Stream don t get value until product is in the hands of the customer Drive from Value system evolution is based on value, not technology evolution Copyright 2012 Net Objectives, Inc. All Rights Reserved 22
23 Value to the Business Value to the Business Evolving the Business Verses Evolving the System Business Evolution System Evolution Time Time Copyright 2012 Net Objectives, Inc. All Rights Reserved 23
24 Pulling it all together Technically-driven vs. Feature-driven Iterative = Start with what we know, implement some, show the customer, adjust Incremental= Feature Driven... Value in short cycles... Slices vs. Layers BIG Batch C small Incremental VALUE C UX UX Client Client MORE BUSINESS VALUE... OR DONE Server Server DB schema DB schema Copyright 2012 Net Objectives, Inc. All Rights Reserved 24
25 ACH (automated clearinghouse) ACH is our electronic network to clear credit and debit transactions with other institutions Primary Objective: By Year s end, process 100% of all loans Primary Objective: Reduce the number of checks required by 25% Key Feature: % error rate Copyright 2012 Net Objectives, Inc. All Rights Reserved 25
26 usiness Backlog for ACH Goal: 100% of Loans 25% Reduction in Checks Loans Checks High Low Copyright 2012 Net Objectives, Inc. All Rights Reserved 26
27 usiness Backlog for ACH Goal: 100% of Loans 25% Reduction in Checks Loans Checks Outbound Inbound Withdrawals Terminations High Low Copyright 2012 Net Objectives, Inc. All Rights Reserved 27
28 usiness Capabilities for ACH BF - Web MMF Web & Call in Outbound - Loans Manage Bank Info Redirect from chk to ACH Bank Notify Update Reconciliation Cover Funds Confirm? Analytics & Reporting What are the business capabilities needed for ACH? What are the sources? How can we group them for highest value? Web IVR Call in Paper Copyright 2012 Net Objectives, Inc. All Rights Reserved 28
29 usiness Backlog for ACH Goal: 100% of Loans 25% Reduction in Checks Loans Checks Outbound Inbound Withdrawals Terminations MMF Web 1 Call in BF IVR BF Paper High Low Release 1 Release 2 Release 3 Copyright 2012 Net Objectives, Inc. All Rights Reserved 29
30 usiness Features to User Stories MMF Web & Call in Outbound - Loans Manage Bank Info Redirect from chk to ACH Bank Notify Update Reconciliation Cover Funds Confirm? Analytics & Reporting User Story Manage banking info for a Webinitiated outbound ACH transaction Web Call in Copyright 2012 Net Objectives, Inc. All Rights Reserved 30
31 usiness Backlog for ACH Goal: 100% of Loans 25% Reduction in Checks Beware! Loans Checks Building Manage Bank Info as a standalone component for everything is a system evolution! Outbound Inbound Withdrawals Terminations Might be more efficient from an IT 1 4 perspective, but it is NOT from a business value 2 perspective!!! 3 MMF Web Call in High Manage Bank Info BF IVR BF Paper Low Release 1 Release 2 Release 3 Copyright 2012 Net Objectives, Inc. All Rights Reserved 31
32 gile Advantage Work on highest value features first Allows for discovery and clarity of customer requirements Quicker time to market Ability to not build features of lower value Goal is to deliver business value incrementally and frequently!! Copyright 2012 Net Objectives, Inc. All Rights Reserved 32
33 Advantages to the customer: learn if what you think you need Is actually what you need be able to incorporate lessons learned into the product uncover risks early and drive costs down Copyright 2012 Net Objectives, Inc. All Rights Reserved 33
34 The question how do we get better, faster and cheaper is not as easy to answer as how do we focus on building only useful product while avoiding delay in our workflows? Copyright 2012 Net Objectives, Inc. All Rights Reserved 34
35 Focus with MMFs and proper portfolio management Limit work levels to capacity Remove delays Encourage thinking at all levels Copyright 2012 Net Objectives, Inc. All Rights Reserved 35
36 Questions Webinars: Capturing Business Rules in Stories. Amir Kolsky. TBD Courses: Lean-Agile Project Management. Atlanta April 3-5 Seattle April 3-5ay Area 3/6-8 Copyright 2012 Net Objectives, Inc. All Rights Reserved 36
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