New Profession - Product Owner. Agilia Conference 2012, Brno
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1 New Profession - Product Owner Agilia Conference 2012, Brno
2 How we wants to achieve Agile? Its about change in the organization! 2
3 How we wants to achieve Agile? Its all about Business Its about change Business Outcome in the Matter organization! 3
4 Paradigm change Quality Scope (Fixed) Scope Budget (Resources) Budget (Resources) Deadline Deadline Quality RISK: Transferred to Vendor (Customer who pays must be happy!) Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 4
5 Paradigm change Can be project successfull? Quality Scope Budget (Resources) Deadline Absolutelly! In Time In Budget Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 5
6 Paradigm change Scope Quality Scope Budget (Resources) Deadline Value (Importance) Estimation + Planning Business RISK: Shared between Vendor and Customer (User (who use) must be happy!) Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 6
7 Paradigm change Scope Quality Product Owner Scope Budget (Resources) Deadline Value (Importance) Estimation + Planning Business RISK: Shared between Vendor and Customer (User (who use) must be happy!) Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 7
8 Traditional product management Marketing Vision Market Analysis Segmentation Marketing Strategy & Communication Competition Assessment Sales Strategy Pricing Distribution... Product Management Product Design Technical Specifications Features Usability Various Stakeholders Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 8
9 Who is the Product Owner? Marketing Product Management Product Owner Commercial success of the product (service) - ROI Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 9
10 Who is Product Owner? New role The one who has the money A man with a Vision product / service Target segment of customers for whom is the product Business how to make money on product Marketing how to market and sell the product Functionality minimal marketable feature, technical concept, usability Entrepreneur / Intrapreneur Customer Voice? Not Really. Its a customer himself. 10
11 What Product Owner does? In General Agile approach Analyze market/users needs Defines Product Vision and Boundaries (time or DL, costs, resources, technology) Prepares requirements and prioritize them Convince development team about product motivates people PO collaborate with production team Provides feedback to the team based on many inputs Is available to production team Coordinates works of supporting members In Scrum Team Creates and owns Product Backlog Attends Planning and Review meetings Defines product iterations and accepts results Doing decisions go/no go 11
12 When role of Product Owner begins? Project Hidden Phase Sprint 0 Inception Production Commissioning Inception: Vision of the project - Ideation Bring stakeholders to agreement around vision Align with enterprise direction Identify initial technical strategy, initial requirements Form initial team Secure funding Identify risks Product Owner Definition Business Plan / Stakeholders Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 12
13 Product Owner One person? Product Owner is One person not a committee. It means PO has authority to make final decision. According to context - may have support team Product Owner Product Owner Product Marketing Architecture Champion Analyst Product Owner Team Team 1 Team 2 Team 3 Team n 13
14 Product Owner Responsibilities Role of Product Owner (the one, who has money) Provides product Vision and Boundaries. Responsible for product profitability (ROI). Responsible for product strategy (product marketing) and tactic (design). Defines product requirements. Defines road-map of product development. Is available to the team 20% of time collaborates. Gives team product vision (why), shares it and actualize. Sets priorities. Accept or reject results. Is ready to discuss changes. Manages Stakeholders. Characteristics of PO Visionary and a action man. Leader and team player. Communicator and negotiator. Is competent and engaged. Attributes of Product Owner Available daily available to the team or directly engaged to selected activities. Business-savvy good knowledge of customers, users, market conditions, etc. Knowledge gained by years of practice. Communicative regularly communicates with stakeholders... Decisive capable to make decision and be accountable for its decision. Empowered is high enough in the organization so nobody overrides its decisions. Mike Cohn Succeeding with Agile. Note: Full-time job. 14
15 Product Owner Required Knowledge Business Domain Knowledge Years of Experience ( Seasoned Veteran ) Product Knowledge Based on Vision, Based on existing product Leadership Skills Training and Practice Communication Skills Training and Practice Entrepreneurial skills Business School, Training, Environment, Nurturing Product Owner cannot be outsourced!!! 15
16 Where is the place in VC for Product Owner? Customer Type Type 1 Mass market Manufacturer (Internal) Type 2 Mass market Enterprise Type 3 Custom development (web) Enterprise Type 4 Custom development (product) Enterprise / Manufacturer (internal use) Type 5 R & D (innovative project) Enterprise Type 6 Government project Government office User Type Limited number (agents) Too many (consumer) Too many / Small (B2B) Application users (limited number) User segment group User group enforced by legislation Example Consumers (small cms system/utility) Facebook, Ebay Corporate web site Requirements tracking software New product Electronic mail box / biometric passport Project Size Small Large Medium- Small Medium - Large Medium to large Medium to large Product Vision Requirements /Spec. Manufacturer - Business Idea Manufacturer- Business Idea Customer Customer Individual Lobbing group Manufacturer Customer Customer Customer Individual Manufacturer Business risk owner Manufacturer Customer Customer Customer / Manufacturer Source: Michal Vallo, Aguarra Manufacturer Government Business risk High High Medium Medium - Low Very high Very low Mitigation Direct Communication Product Owner Small steps (features) / Rapid feedback (single feature, readiness to roll back) N/A. Alternative: Rapid feedback channel (web), group of test users Intrapreneur / Visionary leader Small steps (features) / Rapid feedback N/A. Alternative: Rapid feedback channel (web), group of test users Intrapreneur / Visionary leader Sprints Sprints - communication with pool of test users Sprints - communication with pool of test users None One -to -One One -to -Few One -to -Few None Marketing - customer side Prod.Management Manufacturer/ Department cust. Intrapreneur N/A or PM PO Team size None or Little Medium One or small One or small One or small One or None 16
17 Mass Market Manufacturer Product Vision: Manufacturer business idea User type: Limited number (agents) Risk: High Product Owner: Intrapreneur visionary leader PO Type: Internal 17
18 Mass Market - Enterprise Product Vision: Manufacturer business idea User type: Too many (consumer) Risk: High Product Owner: Intrapreneur visionary leader PO Type: Internal 18
19 Custom development - web Product Vision: Customer User type: Too many / small (B2B) Risk: Medium Product Owner: Marketing customer side PO Type: External 19
20 Custom development - Product Product Vision: Customer User type: Application users (limited number) Risk: Medium Product Owner: Prod.Management Manufacturer / Department cust. PO Type: External / Internal 20
21 R & D Innovative product Product Vision: Individual person User type: User segment group Risk: Very high Product Owner: Intrapreneur PO Type: Internal 21
22 Government project Product Vision: Lobbing group User type: Enforced by legislation Risk: Very low Product Owner: n/a or Project Manager PO Type: n/a, External is better IMPLEMENTING AGILITY PROBLEMATIC OR NOT POSSIBLE 22
23 Where in the arrangements is Product Owner Type1 Mass market Customer type Manufacturer (Internal) User type Example Product Owner Internal vs External Limited number (agents) Consumers (small cms system/utility) Type 2 Mass market Enterprise Too many (consumer) Facebook, Ebay Intrapreneur / Intrapreneur / Visionary leader Visionary leader Type 3 Custom development (web) Enterprise Too many / Small (B2B) Corporate web site Marketing - customer side Internal Internal External Type 4 Custom development (product) Enterprise / Manufacturer (internal use) Application users (limited number) Requirements tracking software Product Management - Manufacturer External/Inter nal Type 5 R & D (innovative project) Enterprise User segment group New product Intrapreneur Internal Type 6 Government project Government office User group enforced by legislation Electronic mail box / biometric passport N/A or PM N/A (external is better) Product Owner is right where business value is created. 23
24 Typical problems - selection No Product Owner at all Unempowered Product Owner PO as an administrator Committee Incompetent Product Owner Wrong person Lack of skills, visionary and leadership Lack of experience in Agile development Lack of personal interest Lack of communication with the team No product vision & strategy Product Owner Proxy 24
25 Summary Product Owner Is (most) important role Is entrepreneurial business role principal goal is to create commercially successfull product / service Requires: 1. Experience 2. Knowledge (Business Domain) 3. Courage PO has to be trained PO is one person (who may represent small team) 25
26 Recommended reading Books Agile Product Management with Scrum, Roman Pichler, Addison Wesley, 2010 Leading Lean Software Development Results are not the point, Poppendiecks, Addison Wesley, 2009 Agile Excellence for Product Managers: A Guide to Creating Winning Products with Agile Development Teams, Greg Kohen, 2010 The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, Eric Ries, 2011 Inspired: How To Create Products Customers Love, Marty Kagan, 2008 Articles The New New Product Development Game Hirotaka Takeuchi, Ikujiro Nonaka, Harward Business Review, 1986 Webs Scrum Alliance ( Scrum ( Agilia ( Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 26
27 Thank you Ing. Michal Vallo, MBA, CSP Tel Aguarra, s.r.o., Lisabonská 2394/4, Praha 9, 27
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