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The Agile Business Gap
www.brainmates.com.au
Nick CosterCo-Founder and
Head of Training Services
We are a Product Management Consulting and Training business.
We work with product teams across varied industries, companies and organisational sizes.
Our training courses include:
Essentials of Product Management
Agile for Product Managers
Business Case Writing
See more at http://www.brainmates.com.au/training-summary
The Agile Business Gap
Business Development
The Vision of an Agile Business is…
The Vision of an Agile Business is…
Earlier realisation of
business benefits by
prioritising for business
and market value.
The Vision of an Agile Business is…
Delivery of
smaller and more
regular product
features to the
market.
The Vision of an Agile Business is…
Increased business
collaboration and
transparency
throughout the
development.
The Vision of an Agile Business is…
Reduction of risk through faster learning from the market.
But…
… we have observed a repeating problem in many
existing business where Agile is implemented.
Agile starts well…..
….. but then GAPS start to appear between the business and the development team.
These are Agile Business Gaps
What causes the Agile Business Gap?
Page Text
Business Definition
Development Definition
AGILE
20
Traditional Product DevelopmentIdea
Business Case
Design
Build
Market Launch
21
Traditional Product DevelopmentIdea
Business Case
Design
Build
Market Launch
Likelihood of Market Fit diminishes over time
High
Low Time
Mar
ket
Fit
22
Agile methods are introduced to deliver better products to
market faster.
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Product Backlog
User Story
User Story
User Story
Sprint Backlog Sprint Tasks
Sprint2-4
weeks
Daily Work
Highest B
usiness
Value
Sprint Release Marketable Product
Agile Product Development
But when a development team “Goes Agile” other
things break.
Why?
25
Idea
Business Case
Design
Build
Market Launch
Agile Product DevelopmentActual
The Product Build is only one stage of many required for successful Product Delivery
26
Idea
Business Case
Design
Build
Market Launch
Agile Product DevelopmentActual
The impacts of introducing Agile will be felt throughout the
process…
The Vision of an Agile Business is…
?!
Gap 1:Product Management Resource Gap
29
Idea
Business Case
Design
Build
Market Launch
Agile Product DevelopmentActual
In an Agile team there is a Product Owner
But where do “Product Owners”
come from?
By default the Agile team turns to the
Product Manager…
IMPACT:
When a Product Manager also acts as the Agile Product Owner, both the product and
the Agile project suffers.
Tip 1:a) Resource a dedicated Agile
Product Owner role.
b) The Product Manager and the Agile Product Owner work hand in hand to manage the product delivery.
Make it clear!
Business “Product Owner”
≠Agile “Product Owner”
Business “Product Owner”:
Responsible for Product Profit and Loss $$
Agile Product Owner:
Responsible for prioritisation of user stories to increase customer and business value.
Outcome:
Appropriate Product Owner resourcing allows for better communication and delivery through job specialisation.
Gap 2: Agile Product Management Gap
40
Idea
Business Case
Design
Build
Market Launch
Agile Product DevelopmentActual
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Product Backlog
User Story
User Story
User Story
Sprint Backlog Sprint Tasks
Sprint2-4
weeks
Daily Work
Highest B
usiness
Value
Sprint Release Marketable Product
Key interface is the
Product Backlog.
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
User Story
Product Backlog
But where do User Stories come
from?
The Product Backlog is a prioritised list of
User Stories.
Product Manager converts
high level Business Case
objectives into more granular
requirements.
http://www.romanpichler.com/blog/tools/product-canvas/
Signoffs and Approvals
These documents need to be “complete” before they are signed off.
IMPACT:
With no changes to the signoff and approval stages the benefits of an Agile team
are wasted.
Tip 2
Develop requirements in “Discovery Sprints” of the same
length as Agile team Sprints.
Signoffs at the end of each Sprint.
Prioritise Business Case outcomes by
market segment value.
Segment A
Segment B
Segment C
Segment D
Highest Business Value
Lowest Business Value
For the highest value segment, storyboard scenarios (or “epics”)
Segment A
Scenario A1Highest Business Value
Lowest Business Value
Scenario A1 Scenario A2 Scenario A4
Scenario A3
Scenario A2
Scenario A4
Scenario A3
Highest Business Value
Finally, break the scenario into
smaller tasks or User Stories
Segment A
Scenario A1
User Story A1-X
User Story A1-Y
User Story A1-Z
Highest Business Value
Lowest Business Value
Product Backlog
prioritised by business value and testable outcomes.
Segment A
Scenario A1
User Story A1-X
User Story A1-Y
User Story A1-Z
Segment B
Scenario B2
User Story B2-X
User Story B2-Y
User Story B2-Z
Segment A
Scenario 2
User Story A2-X
User Story A2-Y
User Story A2-Z
Highest Business Value
Lowest Business Value
Outcome:
Alignment of sprint cycles delivers regular small parts of
Business value with the traditional process.
Gap 3:
Business Case Gap
53
Idea
Business Case
Design
Build
Market Launch
Agile Product DevelopmentActual
Business Case funding is for projects, NOT continuous delivery of a product in the
market.
Continuous Product DeliveryProjects
Established Organisations
Project Focused Funding.
Need to know project costs before project starts.
Want to spend as Capital Expenditure for accounting.
IMPACT:
It is more difficult to get projects funded when the
costs are so “Flexible”.
Tip 3:a) Estimate the full cost of a single
sprint.
b) Estimate the # Sprints required for a market release.
This limits both costs and time of the project and helps clarify scope.
Outcome:
Simplifies business case costing.
Smaller projects, more often embraces faster learning from
the market.
Is your Business Agile?
How will you close the Agile Business Gap?
Business Development
61
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