Product Owner. Expectations Role Lean Agile experience? Lean Agile Product Owner Business Responsibilities 11/14/2012. Business Responsibilities

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1 Product Owner Responsibilities Expectations Role Lean Agile experience? Copyright Net Objectives, Inc. All Rights Reserved 2 1

2 WASTE and the DELAY OF VALUE Always 7% Often 13% Never Used 45% Sometimes 16% Usage of Features and Functions in Typical System Rarely 19% Source: Standish Group Study of 2000 projects at 1000 companies Copyright Net Objectives, Inc. All Rights Reserved 3 The basis for Scrum and other Agile methods Software development is inherently a non deterministic process This doesn t mean it can t be controlled; rather it can t be managed completely through prediction. It means you must react and adapt. creating the recipe vs. producing many meals! Copyright Net Objectives, Inc. All Rights Reserved 4 2

3 You cannot build the right thing if you have not discovered it first! realize it Value discover next increment discover how to build it and implement it Copyright Net Objectives, Inc. All Rights Reserved 5 Discover Value (ROI) Priority & Sequence Value increments Acceptance / Validation Criteria How to build it What resources are needed How to implement it Copyright Net Objectives, Inc. All Rights Reserved 6 3

4 There is no such thing as Agile. Alan Chedalawada You are either more agile or less agile Copyright Net Objectives, Inc. All Rights Reserved 7 Agility is where you have Predictability and faster realization of Value Copyright Net Objectives, Inc. All Rights Reserved 8 4

5 software by itself useless things technology solutions by themselves Copyright Net Objectives, Inc. All Rights Reserved 9 Agility is about Value Increments not Development Cycles Copyright Net Objectives, Inc. All Rights Reserved 10 5

6 You need Agility for Speed Faster realization of Value Value Get more (business value) from current resources (capacity) Productivity Higher productivity of business value delivery (measurable) Copyright Net Objectives, Inc. All Rights Reserved 11 Enterprise Agility Team technical Manage ment Copyright Net Objectives, Inc. All Rights Reserved 12 6

7 BUSINESS AGILITY BUSINESS INCREMENTS PRIORITY AND SEQUENCE RELEASE PLANNING Copyright Net Objectives, Inc. All Rights Reserved 13 What the wants Specify what is most important at any given point in time Learn from what is already implemented Learn from changing environment Update and reprioritize requirements / Customers may know what is valuable They may not know or understand everything involved in achieving it right at the beginning. Do not build what you do not need! Agility Copyright Net Objectives, Inc. All Rights Reserved 14 7

8 Value = Life-Cycle of Profit Use Value Criteria and Weighting to develop an initial prioritized list based on business value Copyright Net Objectives, Inc. All Rights Reserved 15 Value Criteria Copyright Net Objectives, Inc. All Rights Reserved 16 8

9 Prioritization Strategy 3 5 yrs Design 1 3 yrs Portfolio annual Book of Work Copyright Net Objectives, Inc. All Rights Reserved 17 Concept Regional Coordinators Leaders Trainers & Educators Product Managers Capabilities Product Champion(s) New Requirements Customer Customers Support Consumption Product Related Product Related Software Product Software Release Shared Components Development Shared Components Lean-Agile Copyright Net Objectives, Inc. All Rights Reserved 18 9

10 BUSINESS DISCOVERY c h u n k i n g BUSINESS DELIVERY s l i c i n g Priority Planning LEAN Readiness Ready to Pull Iteration 0 Iterative Development Incremental Deployment Support & Feedback ITERATIVE AGILE AGILE LEAN provides framework and practices for producing increments of functionality provides principles and practices which enable defining and prioritizing increments of highest business value Copyright Net Objectives, Inc. All Rights Reserved 19 Lean Thinking Only work on something that has business value and you know how to achieve it Only start something you know you can finish (uninterrupted) Have a quick Discovery process to enable the above 2 things Copyright Net Objectives, Inc. All Rights Reserved 20 10

11 value stream BUSINESS DISCOVERY c h u n k i n g BUSINESS DELIVERY s l i c i n g Priority Planning Readiness Ready to Pull Iteration 0 Iterative Development Incremental Deployment Support & Feedback what is faster? Copyright Net Objectives, Inc. All Rights Reserved 21 How else can we achieve faster realization of business value? Copyright Net Objectives, Inc. All Rights Reserved 22 11

12 economics of responsiveness Investment Period Payback Period Profit Period Cash flow Time Breakeven First Release Mark Denne and Jane Cleland Huang, Software by Numbers. Copyright Net Objectives, Inc. All Rights Reserved 23 staged releases Investment Period Payback Period Profit Period Cash flow Release 1 Net Return Time First Release Copyright Net Objectives, Inc. All Rights Reserved 24 12

13 staged releases Profit Period Cash flow Investment Period Payback Period Release 1 Net Return Release 2 Net Return Time Second Release Copyright Net Objectives, Inc. All Rights Reserved 25 staged releases Profit Period Cash flow Investment Period Payback Period Total Return Time Breakeven Point Investment Copyright Net Objectives, Inc. All Rights Reserved 26 13

14 Evolving the Value Time Copyright Net Objectives, Inc. All Rights Reserved 27 Evolving the System Value Time Copyright Net Objectives, Inc. All Rights Reserved 28 14

15 Program: Straight Through Processing Investment Budget $20M Payback / ROI 1 3 years Synopsis Value Criteria Improve Operations Customer Satisfaction Reduce Cost Increase capacity for handling transactions Shorten resolution time Reduce manual processing cost (headcount) Customer transactions/requests/issues/problems are handled by process associates in the customer service area. The volume of transactions which need to be resolved on a daily basis is nearing the capacity of what can be handled within a 24 hour period; in addition, resolution time is longer due to the manual effort involved in resolving the problem. The company is committed to investing in technology which would automate (no touch) current manual processes, handle more requests in a shorter amount of time, with a reduced number of process associates. Copyright Net Objectives, Inc. All Rights Reserved 29 Backlog for STP Program: No touch STP Bus Inc Bus Inc Bus Inc Bus Inc Bus Inc High Low Plan Setup Ent. Data Workflow Auto. STP 9 months Plan Setup Ent. Data Workflow Auto. STP 6 months! 4 months 1 month of a dev team s vs. Realizing value 3 months sooner! 80% 10% 10% Copyright Net Objectives, Inc. All Rights Reserved 30 15

16 Project based value increments Defined Scope Budget Schedule Highest value Allocate budget Discovery Defined without priority Prioritized on Value Sequenced on ROI Requirements Requirements Limited evolution Scope Budget and schedule fixed Based on discovery Budget follows Constant evolution Big bang deployment Build and deploy at end Build and deploy in increments Increments Copyright Net Objectives, Inc. All Rights Reserved 31 IT & Team Why is this valuable? What is best way to deliver that value? How to achieve that value? Project portfolio Technology Budgets Discovery and development Continual discovery of highest Core engineering practices business value System integrity Priority & sequence Boundaries to empower teams planning Resolve impediments to speed, flow Value Stream owner Skills excellence Realize business value Optimize team performance Speed of analysis build validation deployment Continual improvement of standards Incremental Iterative Iterative Copyright Net Objectives, Inc. All Rights Reserved 32 16

17 IT & Team Why is this valuable? What is best way to deliver that value? How to achieve that value? Goals Value criteria Success metrics Message map Segments / audience Product Vision Budget capabilities Workflows Process models / maps Scenarios MMFs prioritized by Value Prioritized business features Scenarios / Personas Validation approach & acceptance criteria define design submit to team Copyright Net Objectives, Inc. All Rights Reserved 33 the BUSINESS owns SCOPE andvalue and only the can start and stop work! Copyright Net Objectives, Inc. All Rights Reserved 34 17

18 Copyright Net Objectives, Inc. All Rights Reserved 35 Value The single focus for Priority Progress Work management VALUE Value Team technical Manage ment MAKE FLOW Copyright Net Objectives, Inc. All Rights Reserved 36 18

19 Scope of responsibility Portfolio Hubs (Application Areas) Pods/Teams Book of Work VPC PRPC Image IT BAM IT H L H L Copyright Net Objectives, Inc. All Rights Reserved 37 BUSINESS DISCOVERY Bus Pri Bus Plan Bus Rdy RTP It 0 BUSINESS DELIVERY Iter Dev Inc Depl Spt & Fdbk Scale / Scope Value Time box Team Portfolio Sponsor Book of Work Rolling Releases Level 1,2, & 3 Program Product Owner Program Backlog Releases Multiple Teams Project Product Owner Product Backlog Iterations Whole Team Copyright Net Objectives, Inc. All Rights Reserved 38 19

20 Always Do! Value Criteria Prioritized & sized Product Backlog business increments with technical requirements Release Plan with Feature sequence Cadence to Iteratively Produce & Incrementally Release Synchronization practices to align & focus the team(s) Value Delivery Team(s) all skills needed to produce value Copyright Net Objectives, Inc. All Rights Reserved 39 THE BUSINESS ROLES Value Stream Owner Sponsor Product Owner Product Owner (Release) PM Lead/SME Realize highest business value Optimal cycle time from idea to realization Realize business value and ROI Assigns BPO, Value Priority and Budget Prioritize & incrementally realize business value, ROI Owns scope, timeline, and priority; assigns the PO Owns scope, timeline, priority, and sequence to produce the assigned business value increment; Drives the Teams continually prioritizes, defines and accepts what the Team(s) are producing. Project administration and oversight on behalf of the Acceptance criteria Validation and implementation of business value increment Copyright Net Objectives, Inc. All Rights Reserved 40 20

21 THE MANAGEMENT & TEAM ROLES AND RESPONSIBILITIES Technology Delivery Manager Application Development Mgr Whole Team (Pod) Lean Agile PM Flow: Continual, predictable, incremental delivery of quality solution(s), shorter cycle time Technical Integrity: Extensibility & maintainability Architecture & design; Development standards Produce and implement quality business value increment(s) Continuous incremental improvement Whole team includes all skills necessary to produce a business value increment Core: analyst, technical lead, application developers, QA testers, production support Visibility, transparency, coaching for Lean Agile Practices Continuous incremental process improvement Copyright Net Objectives, Inc. All Rights Reserved 41 Pods > Value Delivery Teams Cross Functional Collective Ownership Self organization Consistency Value Focus Visibility Terminology and Roles Lean Agile Principles, Practices, and Metrics Velocity and Value delivery capacity Team Agility Copyright Net Objectives, Inc. All Rights Reserved 42 21

22 RISK RESPONSIBILITIES B USINESS D ELIVERY Decisions about... belong to... Value, Scope, Timeline Flow and Delivery Solution Integrity Produce and Improve Visibility and Process BPO/PO TDM ADM Pod...everyone LAPM Copyright Net Objectives, Inc. All Rights Reserved 43 Often separated to different people people Analysts and Testers Copyright Net Objectives, Inc. All Rights Reserved 44 22

23 Visibility and Granularity Project / Request Focus Pod Focus MMF Feature/Epic User Stories Right Sized Stories Tasks D e c o m p o s i t i o n Prioritized E v o l u t i o n Copyright Net Objectives, Inc. All Rights Reserved 45 Product Backlog Feature 1 Feature 2 Feature 3 Feature 4 Feature n Story Story Story Story Story Story Story Story Story Story High Low Iteration Backlog RULE: Don t let a story in, unless you know you can get it out! Story Task Task Task Task Copyright Net Objectives, Inc. All Rights Reserved 46 23

24 Project Topline as of Iteration 4 Actual to Estimated Story Points Burn-Up , MMF1 Elevation variance , Security Depository variance 138 point short fall Story Points MMF committed MMF Planned MMF complete Sprint Actual Burn-Up Estimated Burn-Up Top Line Feb 07 Dec 12 Sep 08 Copyright Net Objectives, Inc. All Rights Reserved 47 Feature Burn Up Feature Burn Up. Updated after each iteration. Defines the business priorities (sequence of the features) as well as the estimated size (story points), and completion status. Once the features is complete, its light blue bar can be changed to green to signify done. MMF1 MMF2 MMF3 Copyright Net Objectives, Inc. All Rights Reserved 48 24

25 Product Portfolio Management Lean for Executives Lean Enterprise ASSESSMENTS CONSULTING TRAINING COACHING Team Manage ment Kanban / Scrum ATDD / TDD / Design Patterns Lean Management Project Management Questions Webinars: The Net Objectives Lean Agile Roadmap. Alan Shalloway. Oct. 4 Conferences: 2 nd Annual Net Objectives Lean Agile Conference. Seattle: Oct. 9 Courses: Lean Agile Project Management. Seattle: Oct Copyright Net Objectives, Inc. All Rights Reserved 50 25