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Validating Delivered Business
Value
Going Beyond “Actual Business Value”
22
Yuval Yeret
SPCT | PST
AgileSparks North America
3
PI Objectives – a PITA?
44
5
Self assess: Are we using PI Objectives?
1
min
1. Sit PI Objectives aren’t in use
2. Crawl We use the Features as PI Objectives
3. Walk PI Objectives are created
4. Run PI Objectives are SMART
5. Fly
PI Objectives are considered a key way to
achieve alignment and we’re finding creative
ways to use the concept outside of the ART and
the Program level.
66
7
Self assess: Are we assigning Business Value to PI
Objectives?
1
min
1. Sit We don’t even have PI Objectives, remember?
2. Crawl
No we don’t see the value in it and our business owners don’t have time
for it.
3. Walk Yes, but we don’t really see what’s the value in it. It’s a PITA.
4. Run
Yes, and it helps us achieve better alignment between Agile Teams and
the Business Owners/Product Management
5. Fly
We can quantify the business benefit of assigning business value and the
alignment discussion that results out of it.
8
War is Chaos – replace with GoT,
EndGame, etc.
How did that plan work out ?
9http://www.stephenbungay.com/Books.ink
10
Bungay’s Friction Model
OUTCOMES
PLANSACTIONS
Knowledge Gap:
the difference between what
we would like to know and
what we actually know
Effects Gap:
the difference between what we
expect our actions to achieve and what
they actually achieve
Alignment Gap:
the difference between what we want
people to do and what they actually do
11
Bungay’s Friction Model
OUTCOMES
PLANSACTIONS
Knowledge Gap:
Do not command more than is
necessary, or plan beyond the
circumstances you can foresee
Effects Gap:
Everyone retains freedom of
decision and action within
bound
Alignment Gap:
Communicate to every unit
as much of the higher
intent as necessary to
achieve the purpose
“Briefing and back-
briefing”
“A good decision is a
decision which is about
right now”
Senior officers must on
no account go into details
It is necessary that a subordinate
leader, or even a common
soldier, has to fully understand
the commander’s intent, also to
the next higher level of
command, and the purpose of
the mission. If he does not
understand, then he has the
obligation to ask
1212
6-6
© Scaled Agile, Inc.
Quantitative measurements
As part of the System Demo, teams
compare planned vs. actual PI Objectives.
4Teams meet with their Business
Owners to self-assess the business
value they achieved for each objective
4Each team’s planned vs. actual
business value is then rolled up to the
Program Level in the Program
Predictability Measure
2
13
Self assess: Are we assigning Actual PI Objective
Business Value?
1
min
1. Sit We don’t even have PI Objectives, remember?
2. Crawl No - We don’t see the point
3. Walk
Business Owners and Product Managers do it based on the PI System
Demo
4. Run
Business Owners and Product Managers do it continuously based on
System Demos
5. Fly
Business Owners and Product Managers do it based on actual outcomes
in production
14
DevOps Second Way – Amplify Feedback Loops
https://itrevolution.com/the-three-ways-principles-underpinning-devops/
15
#3 Assume variability; preserve options
4Is the benefit a hypothesis or is it a fact?
4What’s the level of business/requirements uncertainty for this
Epic/Feature/Program?
1616© Scaled Agile, Inc.
Where’s the feature on the Program Kanban at this point?
17
Actual Value?
18
Bungay’s Friction Model
OUTCOMES
PLANSACTIONS
Knowledge Gap:
the difference between what
we would like to know and
what we actually know
Effects Gap:
the difference between what we
expect our actions to achieve and what
they actually achieve
Alignment Gap:
the difference between what we want
people to do and what they actually do
19
Self assess: Are we validating Value delivered/outcomes
achieved?
1
min
1. Sit We don’t even have PI Objectives, remember?
2. Crawl We use the Actual PI Objective Business Value at our PI System Demos
3. Walk
Some real value validation happens but we don’t have a consistent
process for this
4. Run
We have a consistent process for validating real value realized and see it
as key to “objective evaluation of working systems”
5. Fly
Our value validation process leverages both qualitative and
quantitative inputs (CALMR)
20
Try this in your next Inspect and Adapt Quantitative
Measurement session:
21
Make sure Learning/Validating is part of the Definition of Done!
Validate/Learn
as part of the
DoD
Limit WIP of
unvalidated
released
features!
Be explicit on
“How we will
validate the
benefit
hypothesis”
2222© Scaled Agile, Inc.
An exercise you might want to try …
http://yuvalyeret.com/learning-done-agile-marketing-exercise/
2323© Scaled Agile, Inc.
4What are some of the key challenges with validating real business value?
4What can we do about them?
24
OUTCOMES
PLANSACTIONS
Knowledge Gap:
the difference between what
we would like to know and
what we actually know
Effects Gap:
the difference between what we
expect our actions to achieve and what
they actually achieve
Alignment Gap:
the difference between what we want
people to do and what they actually do
We can’t really resolve these frictions that every
business struggles with. We CAN do some things to
MITIGATE them.
Driving towards Business Agility is about:
Tightening end-to-end feedback loops…
Aligning on business intent rather than detailed specs…
striving for real validation…
2525
Questions
#SAFeSummit
2626
Thank you!
Coming soon – presentation downloads at
global.safesummit.com/presentations
#SAFeSummit
2727
Please rate sessions
Click the Schedule icon in mobile
app and locate the session
‘Check in’ by clicking the plus
sign next to the session title
1
2
Tap star rating at top
of screen3
28
References
4http://blogs.hbr.org/frontline-leadership/2010/11/mission-
command---an-organizat.html
4http://www.stephenbungay.com/Books.ink
4http://yuvalyeret.com/learning-done-agile-marketing-
exercise/
4https://itrevolution.com/the-three-ways-principles-
underpinning-devops/

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Validating Delivered Business Value – Going Beyond “Actual Business Value”

  • 1. 1 Validating Delivered Business Value Going Beyond “Actual Business Value”
  • 2. 22 Yuval Yeret SPCT | PST AgileSparks North America
  • 4. 44
  • 5. 5 Self assess: Are we using PI Objectives? 1 min 1. Sit PI Objectives aren’t in use 2. Crawl We use the Features as PI Objectives 3. Walk PI Objectives are created 4. Run PI Objectives are SMART 5. Fly PI Objectives are considered a key way to achieve alignment and we’re finding creative ways to use the concept outside of the ART and the Program level.
  • 6. 66
  • 7. 7 Self assess: Are we assigning Business Value to PI Objectives? 1 min 1. Sit We don’t even have PI Objectives, remember? 2. Crawl No we don’t see the value in it and our business owners don’t have time for it. 3. Walk Yes, but we don’t really see what’s the value in it. It’s a PITA. 4. Run Yes, and it helps us achieve better alignment between Agile Teams and the Business Owners/Product Management 5. Fly We can quantify the business benefit of assigning business value and the alignment discussion that results out of it.
  • 8. 8 War is Chaos – replace with GoT, EndGame, etc. How did that plan work out ?
  • 10. 10 Bungay’s Friction Model OUTCOMES PLANSACTIONS Knowledge Gap: the difference between what we would like to know and what we actually know Effects Gap: the difference between what we expect our actions to achieve and what they actually achieve Alignment Gap: the difference between what we want people to do and what they actually do
  • 11. 11 Bungay’s Friction Model OUTCOMES PLANSACTIONS Knowledge Gap: Do not command more than is necessary, or plan beyond the circumstances you can foresee Effects Gap: Everyone retains freedom of decision and action within bound Alignment Gap: Communicate to every unit as much of the higher intent as necessary to achieve the purpose “Briefing and back- briefing” “A good decision is a decision which is about right now” Senior officers must on no account go into details It is necessary that a subordinate leader, or even a common soldier, has to fully understand the commander’s intent, also to the next higher level of command, and the purpose of the mission. If he does not understand, then he has the obligation to ask
  • 12. 1212 6-6 © Scaled Agile, Inc. Quantitative measurements As part of the System Demo, teams compare planned vs. actual PI Objectives. 4Teams meet with their Business Owners to self-assess the business value they achieved for each objective 4Each team’s planned vs. actual business value is then rolled up to the Program Level in the Program Predictability Measure 2
  • 13. 13 Self assess: Are we assigning Actual PI Objective Business Value? 1 min 1. Sit We don’t even have PI Objectives, remember? 2. Crawl No - We don’t see the point 3. Walk Business Owners and Product Managers do it based on the PI System Demo 4. Run Business Owners and Product Managers do it continuously based on System Demos 5. Fly Business Owners and Product Managers do it based on actual outcomes in production
  • 14. 14 DevOps Second Way – Amplify Feedback Loops https://itrevolution.com/the-three-ways-principles-underpinning-devops/
  • 15. 15 #3 Assume variability; preserve options 4Is the benefit a hypothesis or is it a fact? 4What’s the level of business/requirements uncertainty for this Epic/Feature/Program?
  • 16. 1616© Scaled Agile, Inc. Where’s the feature on the Program Kanban at this point?
  • 18. 18 Bungay’s Friction Model OUTCOMES PLANSACTIONS Knowledge Gap: the difference between what we would like to know and what we actually know Effects Gap: the difference between what we expect our actions to achieve and what they actually achieve Alignment Gap: the difference between what we want people to do and what they actually do
  • 19. 19 Self assess: Are we validating Value delivered/outcomes achieved? 1 min 1. Sit We don’t even have PI Objectives, remember? 2. Crawl We use the Actual PI Objective Business Value at our PI System Demos 3. Walk Some real value validation happens but we don’t have a consistent process for this 4. Run We have a consistent process for validating real value realized and see it as key to “objective evaluation of working systems” 5. Fly Our value validation process leverages both qualitative and quantitative inputs (CALMR)
  • 20. 20 Try this in your next Inspect and Adapt Quantitative Measurement session:
  • 21. 21 Make sure Learning/Validating is part of the Definition of Done! Validate/Learn as part of the DoD Limit WIP of unvalidated released features! Be explicit on “How we will validate the benefit hypothesis”
  • 22. 2222© Scaled Agile, Inc. An exercise you might want to try … http://yuvalyeret.com/learning-done-agile-marketing-exercise/
  • 23. 2323© Scaled Agile, Inc. 4What are some of the key challenges with validating real business value? 4What can we do about them?
  • 24. 24 OUTCOMES PLANSACTIONS Knowledge Gap: the difference between what we would like to know and what we actually know Effects Gap: the difference between what we expect our actions to achieve and what they actually achieve Alignment Gap: the difference between what we want people to do and what they actually do We can’t really resolve these frictions that every business struggles with. We CAN do some things to MITIGATE them. Driving towards Business Agility is about: Tightening end-to-end feedback loops… Aligning on business intent rather than detailed specs… striving for real validation…
  • 26. 2626 Thank you! Coming soon – presentation downloads at global.safesummit.com/presentations #SAFeSummit
  • 27. 2727 Please rate sessions Click the Schedule icon in mobile app and locate the session ‘Check in’ by clicking the plus sign next to the session title 1 2 Tap star rating at top of screen3