Answer the Call: Help Product Owners Define and Prioritize Requirements

1. So many decisions, more time than we thought Answer the Call: Help Product Owners Define and Prioritize Requirements

2. So many decisions, more time than we thought Kent J. McDonaldBusiness Systems Coach, Knowledge Bridge Partners Founding Partner, Accelinnova

3. Overview • Problems • Value Models Today • Why It Doesn’t Work • Considerations • Purpose • New Models • Example

4. The Problem(s) • “The Business” Expects Us to Do “The Right Things” • Methodologies Tell Us How to Do Things Right How Do We Do This? Who Decides? And When?

5. Features and Functions Always or Often Used: 20% Always 7% Often 13% Never Used 45% Sometimes 16% Rarely Used 19% Never or Rarely Used: 64% Standish Group Study, reported by CEO Jim Johnson, XP2002

6. Value Models How Do You Determine Costs? How Do You Determine Benefits?

7. Costs Costs Associated with the Team Hardware Costs Software Licensing Costs Vendor Service Costs Impact to Operations (Extra Staff)

8. Benefits Increased Revenue Cost Reductions Opportunity Costs Avoided Fee and Penalty Avoidance Support of Other Initiatives Reputation Improved Customer Satisfaction

9. Value Models This Is Hard….

10. Measuring Business Value • Many Different Approaches • Cash Flow • Net Present Value • Internal Rate of Return • Return on Investment • These Can All Be Gamed • Uncertainty Hard to Factor • Other Factors Impact Value

11. Considerations Impact Value

12. Considerations Things That Could Impact Value: Risks Assumptions Constraints

13. Risks • Technical Difficulties • Changes in Market Conditions • Team Makeup and Skill Set • Domain Knowledge

14. Assumptions • Availability of Team Members • Market Demand for Product • Team Velocity • Understanding of Domain Knowledge

15. Constraints • Market Window • External Events • Compliance Dates • Budget Limit • Team Members • Technical Architecture • “Non Functional” Requirements

16. Collaboration Process Agree to Purpose of Exercise Brain Write Stick Items on a Wall Group Like Items Together Provide Headlines for Groupings Vote for Priority

17. Considerations Impact Value That Didn’t Help Much… How Do You Justify a Project That Does Not Provide Positive Business Value?

18. It’s a “Strategic Project”

19. Value Model

20. Project Purpose Optimist’s View: What Job Is the Project Trying to Get Done? Pessimist’s View: What Problem Is the Project Trying to Solve? The Key Is Common Understanding.

21. Purpose Tools to Help Discover Purpose: • Purpose-Based Alignment Model • The 5 Questions • Elevator Statement • Innovation Game

22. Strategic Development Mission Vision Values Strategic Intent ~ Strategy~Purpose Strategic Long-Range Goals SCO / 5Q Annual Objectives Action Plans (what, who, when) Tactical Individual Business Objectives

23. Strategic Development Mission Vision Values Strategic Intent ~ Strategy~Purpose Strategic Long-Range Goals Start Here SCO / 5Q Annual Objectives Action Plans (what, who, when) Tactical Individual Business Objectives

24. Strategic Intent Competitive Position Cost Differentiation Cost Leadership Product Leadership Broad Strategic Scope Best Customer Solution Narrow Where is Your Organization ?

25. Defining Strategy Answer These Questions: • Whom do we serve and what do they want and need most? • What services do we provide to help them? • How do we know we’re doing a good job? • What is the best way to provide these services? • How should we organize to deliver these services? Identifies Strategic Decision Filters

26. Purpose-Based Alignment High Partner Differentiating Market Differentiating Who Cares? Parity Low High Low Mission Critical Purpose Does Not Equal Priority

27. Purpose Statement Stating the Purpose: Your Elevator Statement For Products and Services: • Who Is It For? • What Do They Need? • Key Benefit Is? • Why Is It Different Than the Competition?

28. Purpose Statement Your Elevator Statement For Business Problems: • What’s the Problem? • Who Does It Affect? • What’s the Impact? • What’s a Successful Solution?

29. Purpose as a Product Box Product Box An Innovation Gameby Luke Hohmann Build Imaginary Packaging for Product Customers Identify the Problems They Want Solved Identifies Expected Benefits http://www.jonathanboutelle.com/mt/archives/2005/11/offline_gamelik.html

30. Example: Health Insurance Health Insurance Example: Create a 24x7 resource people could call to get health care questions answered and get direction to sources for care.

31. Example: Health InsuranceIntent and Filters Strategic Intent: Best Customer Solution Decision Filter: Does this initiative help to improve health care value for our stakeholders?

32. Example: Health InsurancePurpose Alignment High Healthcare analytics Member focus Pharmacy Dental Market Differentiating Claims Processing Enrollment Customer Service Disability Insurance Low High Low Mission Critical

33. Example: Health InsurancePurpose Statements What’s the Problem? Healthcare industry is difficult to navigate Who Does It Affect? Members What’s the Impact? Confused about appropriate place to receive care, resulting in needless expenses What’s a Successful Solution? Provides members a single, trusted point of contact to get health and wellness and urgent care questions answered

34. Example: Health Insurance Purpose • Provide members a single point of entry to heath insurer’s health and wellness resources. • Answer member’s urgent care questions

35. Example: Health Insurance Costs • Software Development Costs • Vendor Development Costs • Ongoing Operational Costs

36. Example: Health Insurance Benefits • Consolidated Member Point of Contact • Cost Avoidance • Gather Clinical Information

37. Example: Health Insurance Considerations • Vendor Size • Integration with Vendor Systems • Date Available Commitments to Customers • Dependency on Other Project to Supply Data

38. Example: Health InsuranceIs Business Value Defined? • Costs >> Benefits • Increased Information About Members • Customer Satisfaction • More Appropriate Care Delivery • Better Informed Members

39. Example • Do We Know What the Right Stuff Is? • Do We Know What to Build First? • Who Decides?

40. So Why Do We Care About Business Value?

41. It’s All About Decisions

42. Value Model?

43. Value Model!

44. What Do We Do?

45. Is Analysis a Lost Art? • Do I Understand the Problem? • Do I Understand the Guidelines For a Solution? • Have I Consistently Described the Solution? • Can I Verify the Solution?

46. Doing the Right Stuff • Tie Project Purpose to Strategy • Factor in Considerations • Utilize Cost/Benefit Information

47. Tie Purpose to Strategy What Is the Project Purpose? Does the Purpose Align with Decision Filters? • Yes – Continue! • No – Stop! • “What Decision Filters?” – Go Back and Define Some.

48. Factor In Considerations • A Business Driven Deadline? • Impact on Other Projects? • Impacted by Other Projects? • Availability of Key People? • Impact of Regulations?

49. Utilize Cost/Benefit Analysis • Adjust for Considerations • Use Consistent Analysis Between Projects • Understand Uncertainty in Estimates

50. Selecting The “Right Requirements” • Look at the Right Level • Put the Analysis Back In Business Analysis • Do the Right Stuff • What Just Meets Purpose?