Beer Miles Product Owner Simulation Agile

• Moving from business case to product backlog and first release... www.innovel.netPage 19 The Business Case The effort to create a business case is usually commensurate with the level

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Beer Miles!

A Product Owner Simulation Game

Robin Dymond David Douglas Innovel LLC

Agile 2008

Released under the Creative Commons License

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Beginner’s Mind

• One of the most profound secrets of learning anything new is

keeping what has been called a "Beginner's Mind"

• To begin, we should empty our thoughts of all the preconceived

ideas, concepts, techniques and methods that prevent us from

receiving the new This seems like a simple thing to do, but can be quite difficult in practice

• At first we think we are being open, but as we drink from the new

knowledge we detect residual tastes of the "old" Sometimes this

new mixture can be sweet, like adding honey to tea, but sometimes even a little residue can curdle the whole mix, like adding lemon

juice to milk

• Another important part of developing the beginners mind concerns getting rid of the "Been There, Done That" concept that seems so

prevalent in today's society It may be true that you have been

there, and you may have done that, but perhaps your conception of reality was not the whole concept, "the big picture" if you will.

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Room setup

• Rounds/pods

• 4-6 per table

• Projector for powerpoint

• Printed business case (2 pg.) for each person

• Printed A6 index cards, a 39 card set per table

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Where are you?

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Product Owner Training Agenda

• Where are you?

• Why this exercise? The trainer’s goals.

• Setup: Thinking about value.

• BeerMiles! From Business Case to Product Backlog

• Facilitation Notes

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Why this exercise?

• Product Ownership is a different role from traditional product

management

• The skills required for a good Product Owner (PO) are different

• A key stumbling block is re-planning based on new information

• Can we show that releasing in a few iterations really is

possible?

• Moving from business case to product backlog and first release

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The Trainer’s Goals

• Shift the mindset from:

– Planning to delivery

– From we can’t release to we must release

• Shift the focus from guessing at value to testing for value

• Focus on customer value not features.

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The Product Owner’s World

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The Value Conversation

How do the best companies in the world think about value?

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The Research…

Good To Great

by Jim Collins

Found and researched over 6 years 15

companies that went from

mediocre to great performance.

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The Hedgehog Concept

“The Hedgehog concept is

a simple, crystalline concept that flows from deep understanding about the intersection of the

three circles.”

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What are your three circles?

What are you deeply Passionate about?

What you can

be the best in the world at

What drives your economic engine

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“If you could pick only one ratio, profit

per x to systematically improve over

time, what “x” would have the greatest

and most sustainable impact on your

economic engine?”

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 "Walgreens' hedgehog concept is

to run the best, most convenient

drug stores with high profit per

customer visit"

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Example: Nucor Steel

 Profit per ton of steel produced

 Drove decisions including:

 Getting into the foundry business

 Small distributed mills

 High level of innovation, new technology

 Shared performance based compensation strategy

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ZARA: World’s Fastest Mass Fashion Retailer

• EU’s largest fashion retailer with over

1100 stores.

• Concept to clothing in 1100 stores in 4

weeks, small batches, rarely have sales

• New items entering stores twice per week

• 11,000 designs per year vs 4000 at Gap

• EU wages up to 20 times more expensive

• Air ship clothes on hangers for fast

stocking in stores

• Spend 0.3% revenue on advertising vs

3.5% at competitors,

• Invest in locations

• “Fashion is like bread, you need to

change it often” - Chairman

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“A Hedge Hog concept is not a goal to

be the best, a strategy to be the best,

an intention to be the best, a plan to

be the best It is an understanding of

what you can be the best at.”

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The Business Case

Business Case

Undertaking a project needs to make

economic sense The return required to

achieve a tangible output must justify

the investment made.

Like all other things Agile, the business

case is a living document that will

adjust as the situation changes.

Product Owner Responsibilities

 Craft and update the business case

 Ensure all parties are continually aware of overarching

goals

 Ensure alignment of project to corporate strategic goals

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The Business Case

The effort to create a business case

is usually commensurate with the

level of investment and the

perceived risk.

There are no format or effort level

rules as this is often a function of

standard and acceptable practices

within a company

 Don’t fall into the trap of analysis paralysis

 If you go beyond two weeks of effort you have probably done too much

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• Find the categories of value creation “Why do this project”, “What

kind of value are we creating and for whom”, “What do I really care about”, “What do our customers really care about”

Prioritization

• With input from your stakeholders, prioritize the business drivers

• Don’t allow everything to be a number one priority

Business

Case BusinessDrivers Prioritization

Categorize Capabilities

Backlog & Release

Plan

Product Ownership Framework

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Framework #2

Create and Categorize capabilities

• Create high level capabilities based on customer value, with the help from the business User stories provide a good

Backlog & Release

Plan

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Framework #3

Create Product Backlog and Release plan

• Use your prioritized business drivers and list of capabilities to build the product backlog.

• Don’t forget to consider items that require long lead times and infrastructure necessary to support the creation of value

• Identify points where you think there has been enough value created to release capabilities to production

Business

Backlog & Release

Plan

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Let’s apply the framework…… Let’s Apply the Framework

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Value Creation and Business

Scenario

Part 1 Read the business case

handout

Exercise At your tables determine

what are the top 3 business drivers for

this new business?

Business

Backlog & Release

Plan

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Business Drivers Discussion

 What was your conclusion and how did you arrive at

it?…

 What other data do you think you would need to

make you feel confident about your decisions?

 If you’re receiving internal and external pressures

regarding business drivers/priorities, how would you

handle that?

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Business Drivers Discussion

Driver 1 Be first to market

Driver 2 Drive market share through

convenience

Driver 3 Delight the customer to

increase usage

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Business Drivers and Priorities

Part 2 - What are the high level capabilities for each

of the 3 business drivers?

Exercise At your tables, group the high level

capabilities provided with the Business Driver that

they most directly support

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Capabilities Discussion

 Discussion questions:

 Some capabilities weren’t called out in the business case, how did

you deal with them?

 Did you have trouble sorting any of the items?

 If you had 150 detailed requirements, would it be easer or harder?

How would you simplify?

 What obstacles / hurdles did you encounter during this exercise?

 How did you feel when having to make these decisions? Did you have

enough, not enough, or more than enough to make a confident decision?

 Who would you need to communicate the results to?

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Agile Planning

Points and Relative Estimates

 Agile teams estimate work in using different techniques and levels of

precision

 Story Points or Ideal Hours/Days are used to estimate User Stories on

the Product Backlog

 Effort Points or Ideal engineering hours are used to estimate tasks on

the Sprint Backlog

 Considerations that the team uses to estimate

 Difficulty, Time required, Organizational challenges, Uncertainty,

Number of participants, and Dependencies

 Point estimates are relative measures of size (1,2,3,5,8,13,)

 Ideal Days/Hours are measures of effort

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Agile Planning: Velocity

 The amount of work (Story Points/Ideal Hours), that an Agile team can

complete in 1 iteration.

 A fixed size team working on a project has a stable velocity.

 Well functioning teams cannot influence their velocity much.

 Ideally, Agile teams are fixed in size, and all resources should be at least 50% dedicated to the project, with no more than 2 projects at a time.

 Velocity is impacted by:

 changes to the team, removal or additions

 uncertainty in requirements

 product owner availability to the team

 barriers – organizational, technological, SME availability, process overhead

 command and control – disempowerment of team to self organize around the work

 pushing too much work into the team (Mura)

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Building the Product Backlog

Part 3 - Building the Product Backlog for delivery of valuable features

Exercise Create a product backlog using the stories that you have been given Consider the business drivers, priorities, and any infrastructure as you prioritize Identify when you think you will have your 1 st release Determine when you might release additional features into production

– Team’s projected velocity is 100 points – The iterations/sprints are 3 weeks long

Business

Backlog & Release

Plan

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Product Backlog Discussion

• What was it like to plan with the information you had?

• What looks risky to you?

• When will you tackle it in your plan?

• How would you communicate this plan?

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Part 4 – Dealing with changes to the plan!

Scenario 1: Team has completed the first iteration,

the velocity is 50 points due to team learning about

each other and the business domain, unplanned

external dependencies, and on-boarding of new

resources.

Exercise – At your tables, use the empirical data

supplied to re-plan your product backlog and releases

while still meeting the goals of your business case.

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 How does this affect your release plan?

 How might you increase the team’s velocity?

 How would you manage your stakeholders/what would you communicate?

 Is there any way you can make your date?

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Part 5 – Dealing with more changes to the

plan!

Scenario 2: Line of business #1 wants their first

partner to be Brinker, with 1600 upscale restaurants

Line of business #2 wants their first partner to be

7-11 and a “speed pass” card for beer points for use at

POS

Exercise – At your tables, use the empirical data

supplied to re-plan your product backlog and releases

while still meeting the goals of your business case.

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 How would you resolve this conflict?

 How would you ground your decision?

 How often would you expect to go through this type of

exercise on an Agile project?

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The Punch Line

• A large financial services company actually did this type of product (not beer)

• A co-marketing agreement with the partner was put in

place.

• They added two fields the account management screens

• They managed the rewards with a spreadsheet

• When someone claimed rewards, they went to the partner, bought gift cards, and mailed them out.

• No new applications, environments or hardware were

required.

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Facilitator Notes

• What are the key take aways people should come away

with?

• How does the framework facilitate prioritization?

• What are the “traps” that are setup for the participants?

• Are there other issues you might use?

• What are the issues you need to emphasize?

• How does maximizing value play into this exercise?

• How would you debrief this exercise?

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Facilitator Notes

• How does incremental increase in information change the

prioritization?

• What would you emphasize when doing this training?

• How would you debrief this training?

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Where Can I Get More Information?

• http://www.innovel.net/?page_id=65

• Good to Great by Jim Collins

• Do it Wrong Quickly by Mike Moran

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