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Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
That is, while there is value in the items on
the right, we value the items on the left more.
www.agilemanifesto.org
22
What is Agile Software Development?
Dedicated Team Incremental Iterative Frequent Delivery Fully Visible Production Quality Value Driven
23
Estimates
Features
Schedule Cost
Plan
Driven
The Plan creates
cost/schedule estimates
Waterfall
The Vision creates
feature estimates
Schedule Cost
Features
Value / Vision
Driven
Agile
Source: Sliger and Broderick “The Software Manager’s Bridge to Agility”
Constraints
Value Driven
24
Continuous Improvement
Plan
Do Check
Act
Deming Cycle
Empirical Process Control Transparency, Inspect
and Adapt
5
Certified Scrum Product Owner
www.agilecrossing.com
25
notes
25 26
Scrum Planning
• Scrum planning is continuous
• Scrum planning happens at 5 levels, each
with a different time horizon
• The Product Backlog is the primary source
of work to be completed and value to be
delivered
27
Drawbacks of Traditional Planning
• Done when we know the least
• Written words become a commitment
• Too much information to grasp at one time
• Confuse “What” with “How”
• Details are open to interpretation
• Everything is Priority One
• Success is measured by adherence to schedule
• Not easily broken down to independent pieces 28
5 Levels of Planning
Strategy
Portfolio
Vision
Roadmap
Release
Sprint
Day
P1 P2 P3 P4 P5
Product Backlog
Release 1 Release 2 Release 3
s1 s2 s3 s4 … sN
Scru
m P
lan
nin
g
29
The Elements of Agile Planning
Product Backlog
Must
Should
Could
Won’t in this
Release
s1
s2
s3
…
sN
Release as often as possible
Newsworthy Release Event
Tim
e
Sprints
Priorities Which items are most valuable?
Velocity How much can the team complete in a Sprint?
Estimates How much effort is expected for each item?
Product Backlog What functionality Is needed for financial success?
30
notes
30
6
Certified Scrum Product Owner
www.agilecrossing.com
31
Product Vision
• The Vision describes the purpose of the
product to be created or enhanced
• There are several ways to present the
vision as a common goal for the Scrum
Team
• The Vision is the inspiration for the
Product Backlog
32
Product Discovery
• What is the target market? • Who are the target customers? • What are the sales channels? • What are the top benefits? • What are the pricing and revenue models?
We have newer Agile ways to do this
compared to traditional “Requirements Gathering”
33
Product Vision
• The Big Picture of how the product creates value
• Aligns everyone to the same goal
What is the name? Who is the target customer? What are the key benefits? What are the differentiating features?
34
Product Backlog
• Dynamic set of items to be done
• Prioritized
• Constantly in flux as the situation changes
Story
Story
Story
Spike
Story
Refactor
Story
Defect
Process Change
items are removed
priorities change
items are added
35
Vision Board
36
notes
36
7
Certified Scrum Product Owner
www.agilecrossing.com
37
Product Roadmap
• Road-mapping is a tool for creating a
longer term release strategy
• Roadmaps describe the product in very
high level terms
38
Product Roadmap
First sub-setting of Product Backlog for a long product development time frame
• How many releases?
• When?
• What is included in each?
Tim
e
Health Care Products
Information
Health Care Products Retail Sales
Health Care Products Wholesale
Sales
The roadmap will be reviewed and updated as things
change
Product Backlog
Releases
39
Product Roadmap – an example
Fajita Prescriptions and
Global Sales
Core
• Hippa
Community
• I8N
Shopping Cart
• Line of credit
Platform
• Mobile access
• For all users, wholesale RX • For all users, international
access • For BusDev, credit support
Q2 Q3 Q4
Core Engine
• Catalog
• API
Community
• Product rating
Shopping Cart
• Typical retail functions • Credit card support
Platform
• Transactions
• Billing
• For all users, retail sales for OTC products
• For providers, manual and API catalog access
Core
• CRM
Community
• Supplier ratings
Shopping Cart
• Purchase Order support
Platform • Scalable to 1M
transactions/day
• For all users, wholesale sales for OTC products
• For all users, retail sales for Rx products
• For Sales, CRM Functionality
Taco Retail Sales of OTC Products
Enchilada Wholesale Volume
Sales
Q1
Core Engine
• CMS
• Manual SEO
• Keyword Search
Community
• Article rating
Shopping Cart
Platform
• User accounts
• For all users, free access to linked and original content
• For writers, content management
• For Sales, SEO access
Nacho
Information Site to Build the Brand
Release name
and goal
Release date
Objectives by user and
feature area
Architectural Build-out 40
notes
40
41
User Stories
• User Stories are simple descriptions of
desired functionality
• Stories are elaborated just-in-time for
implementation
• Stories are used for planning
• The INVEST Criteria help us write good
stories
42
User Story Template
As a <user role>, I can <do something> so that <I get some value>.
Card – Conversation – Confirmation
8
Certified Scrum Product Owner
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43
Sample User Stories
As a registered user, I can purchase OTC products on-line so that I do not have to drive to the store
As a purchaser, I can print a receipt for a past transaction so that I can keep my own off-line records
As a purchaser, I can search for generic equivalents of name-brand items so I can save money
As a vendor, I can see monthly sales reports so I can see which products are selling best
44
Where are the details?
(front)
Story 6: Catalog Demo As a prospective user, I can browse the catalog to see if it has the kinds of products I am interested in.
(back)
Story 1 Acceptance Criteria [ ] Use standard design layout [ ] Has full catalog actions except for adding to shopping cart or wishlist [ ] Item click leads to product detail page with same restrictions [ ] Show product review star ratings only, no comments [ ] Call to action: “Become a Member” links to registration page
Automated Tests
Speclet • formula • UI design • business rules
45
Backlog Hierarchy
Epic User Story Task Task Task Task
User Story Task Task Task Task
User Story Task Task Task Task
Product Backlog
Sprint Backlog
Business Goal
Planning Implementation
46
INVEST Criteria for User Stories
I Independent Can deliver value by itself
N Negotiable Details can be worked out by conversation
V Valuable The value to the user is clear
E Estimable Dev Team understands it well enough to estimate
S Small Fits in one Sprint
T Testable We have clear test criteria
Bill Wake, 2003
47
User Story Tips
As a User…
As a <Scrum Role>
Who, How, What instead of Who, What, Why
Will it take more than 2-3 days?
Would a user really ask to do that?
? How can we know when it is done?
? How can we test it?
? How would we demo that at the sprint review?
> 1 And, Or, Plurals, Comma
> 1 Too many acceptance criteria (>12)
> 1 Too many tasks (>10)
INVEST
48
notes
48
9
Certified Scrum Product Owner
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49
Prioritizing
• Priorities help the Scrum Team decide
what to do next
• Priorities help with long term planning
• Prioritization can be done in many ways,
based on many criteria
50
The Right Product
What you deliver is much more important than how much you deliver!
$ $ $ $ $ $ $
$
$
$
51
Managing Value
Return on Investment =
Benefits – Costs
Costs
Cost is easy with a fixed team size and
Sprint length
Benefit is not so easy to
determine Elements of Business Value • Increased sales • Accelerated sales • Decreased expenses • Customer satisfaction/retention • External compliance • Market differentiation
52
Prioritization - MoSCoW
o Business value
• Acquisition
• Activation
• Retention
• Referral Revenue
o New knowledge
o Risk/Complexity
o Desirability
53
Theme Screening
+ = better than 0 = same - = worse than
Themes
Bu
y a
Pro
du
ct
(Bas
elin
e)
Man
age
C
ata
log
Co
nte
nt
Fin
d
Pro
du
cts
Sup
po
rt
Sup
plie
rs
Co
mm
un
ity
Fun
ctio
ns
Sele
ctio
n C
rite
ria
Draws new customers 0 + + 0 -
Generates Q1 revenue 0 0 - - -
Attracts Investors 0 - 0 + -
Builds out platform 0 + - + 0
Net Score 0 1 -1 1 -3
Rank 3 1 4 2 5
Continue? Y Y N Y N
Source: Mountain Goat Software 54
notes
54
10
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55
Estimation
• Agile estimation is done at both the high
level and the low level
• Estimates are used for planning and for
tracking progress
• Estimates are done quickly, by the
Development Team
• Estimates are not commitments
56
Story Estimation Basics
Quick
Story 1: Home Page As a prospective user, I can view the home page so that I can decide if I want to try the service.
2 Story 17: Generics
As a purchaser, I can search for generic equivalents of name-brand items so I can save money
5
Quick
Relative
Guess
Done by Dev Team
More than 2x effort required
57
Velocity
5
12
27
32
36 38
40 37 38
40
0
5
10
15
20
25
30
35
40
45
1 2 3 4 5 6 7 8 9 10
Sto
ry P
oin
ts C
om
ple
ted
Sprint
Team Velocity
How many story points can the Team complete in a Sprint?
Varies by circumstance, increases with
experience
Aggregates Team dynamics and organizational
factors
Is measured, not “managed” Velocity is sum of
estimates of stories completed
58
Using Agile Estimates
How much we have to
do
How much is
done
Forecast of scope that
will be completed
59
notes
59 60
Story Splitting
• Smaller stories are easier to work with and
enhance flow
• Smaller stories gives us more options to
reduce scope
11
Certified Scrum Product Owner
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61
Smaller is Better
20
5 3 5
Smaller Stories are easier to
work with
Increased Throughput
• helps flow
• quicker feedback
• unbundle priorities
Decreased Complexity
• easier to estimate
• fewer test cases
• easier to focus
• cleaner designs
62
Vertical Slices
Front End (UI)
Middle Tier (Business Logic)
Back End (Data)
Use
r St
ory
2
Use
r St
ory
1
Each story will should deliver
end-user value.
Sam
ple
Arc
hit
ect
ure
Sta
ck
63
Two Levels of Scope Control
Epic 1 Epic 2 Epic 3 Epic 4
In Scope for Release Out
64
Story Splitting Patterns
• Workflow Steps • Business Rule Variations • Major Effort • Simple/Complex • Variations in Data • Data Entry Methods • Defer Performance • Operations (CRUD) • Spikes
Ex. Sprint cost is cost of people on the team for 2
weeks
“Must Have”
Stories
“Could Have”
Stories
“Should Have”
Stories
Planned scope = 300 sp
Forecast velocity = 30 sp
Planned Sprints = 10
Sprint cost = $100,000
Release Cost = $1,000,000
116
Cone of Uncertainty
Agile release forecast improves with each Sprint based
on actual data as the Team matures.
Esti
mate
Vari
ab
ilit
y
117
Initial budget request is based on cost estimate for 2 Releases
Product becomes self-funding in
Release 3
Denne, Mark; Cleland-Huang, Jane (2003). Software by Numbers: Low-Risk, High-Return Development.
Incremental Funding
118
Annual budgeting, like Waterfall development, is at odds with innovation, adaptability and responsive investment. • Success is defined by keeping to the budget at any cost • Sales targets trump customer sat • Internal competition with other products • Risk aversion • Ask for more than you need and always spend it all • Product maintenance cost is someone else’s problem
http://www.bbrt.org/
• Common Cause
• Transparency
• Self-managed Teams
• Ambitious Goals
• Reward financial performance
• Continuous Planning
• Just in time resourcing
• Manage by feedback
Beyond Budgeting
119
Defer commitment until the last responsible moment • Take steps to increase knowledge and stop early
if assumptions are proven false • Invest incrementally as assumptions are
confirmed • Reallocate capital based on new knowledge
• Parallels or proceeds product development • Find out who your customers are • What kind of market are you in? • What is the Minimum Viable Product? • Phase product with company growth • Iterate to Learn
123
Innovation Games
Product Box
Speed Boat
Me and My Shadow 124
Pragmatic Marketing
Tune into the Market. Gain practical techniques for learning about your market and competitors. Discover tools and techniques that allow you to identify the entire market, listen to it and become its messenger.
- http://www.pragmaticmarketing.com
125
Lean UX
User Research
Design Studio
Story Maps
126
notes
126
22
Certified Scrum Product Owner
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127
• Agile and Scrum concepts can be applied
at the product portfolio level
Portfolio Management
128
Teams Increase Value/Time
Finance Teams Not Projects
129
Portfolio Team
Product 1 Product 2 Product 3 Product 4
• Manage allocation of investment in products
• Product Owner is Upper Management
• Members are project Product Owners
• Backlog is Product releases
• Priorities can change
• Teams can be re-allocated to different products
Portfolio Level Scrum
130
Balance investment in Project Types • Support the org • Grow the business • Create new opportunities
Stop Starting Start Finishing
Rank products/projects by value
Don’t throw good money after bad
Reduce the budget cycle for greater agility
Rothman, Manage Your Project Portfolio: Increase Your
Capacity and Finish More Projects
Portfolio Management Tips
131
notes
131 132
Other Prioritization Tools
• Relative Weighting can be applied to
Stories
• Financial Projection can be applied to
Releases and Features
• Innovation Games can quickly get input
from your customers
23
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133
Prioritization Factors
Factors to consider • Value
• How much revenue will it generate? • How much present cost will it save?
• Cost • The estimation process gives us a figure • May change with time of delivery
• New knowledge • About the project (means) • About the product (ends)
• Risk • In schedule, cost, functionality • Business or technical
134
Relative Weighting
Relative Weighting applies at the story/feature level
- Choose a manageable set of features
- Assemble a set of Subject Matter Experts
- For each feature, query the SMEs to give a 1-9 weight to
• How much benefit is there if this is implemented
• How much penalty is there if this is not implemented
- Create the summary chart and add estimates of cost to get the value to cost ratios as a priority indicator
135
Relative Weighting Calculation
• Benefit and penalty may be weighted differently
• Add benefit and penalty to get total value
• Priority = Value % / Cost %
Source: Agile Estimating and Planning, Mike Cohn
136
Financial prioritization (Profit and Loss Statement)
• Look out N years (product lifetime)
• Estimate • New revenue
• Incremental revenue
• Retained revenue
• Operational efficiencies
• Balance with development cost to get net cash flow
• Approaches • Net Present Value
• Internal Rate of Return
• Payback Period
Source: Agile Estimating and Planning, Mike Cohn
Financial Projection
137
Innovation Games
Buy a Feature
Prune the Product Tree
20/20 Vision
138
Kano Analysis
Kano Analysis applies at the theme level - Group features into
- Threshold (must have) - Linear (the more, the better) - Exciters (drive people to buy)
- Get opinions from - Experts - User Survey
24
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139
Kano Survey
• Small user sample is sufficient
• Ask both functional
• What if this feature is included?
• … and dysfunctional questions
• What if this feature is missing?
• Categorize and aggregate results
• In your product include
• All threshold features
• Some linear features
• A few exciters
Agile Estimating and Planning – Mike Cohn
140
notes
140
141
Focus and Flow
• Scrum works best when the Team
achieves a smooth flow of work
• Scrum dynamics are based on the
mathematics of queuing theory that we
use to manage the Internet
• Continuous improvement is an
underlying goal of Scrum
142
Push systems overwhelm capacity, creating turbulence, rework, waste and delay
Pull systems have a steady flow that provides predictability