Professional Scrum PRODUCT OWNER

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Professional Scrum

PRODUCT OWNER
• Mads Troels Hansen – 2018
[email protected], @MadsTH @ScrumDotOrg

• www.MadsTroelsHansen.com v 4.3 © 1993 – 2018 Scrum.org All Rights Reserved


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Improving the Profession of Software Delivery


“If you haven’t found it yet, keep looking. Don’t
settle. As with all matters of the heart, you’ll
know when you find it.”
- Steve Jobs

1
Introductions

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Why Are You in This Class?

• Introduce yourself
• Have you used Scrum before?
• Are you a Product Owner?
• Your professional background:
• Development?
• IT?
• Other?

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Agenda

• Agile Product Management • The Scrum Framework


• Value-Driven Development • Product Backlog Management
• Scrum Theory & Empiricism • Release Planning

With joyful exercises along the way!

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Exercise

Develop guidelines for how to work together during this class.


It’s Your
How will the class deal with:
Experience. Own it.
• Off-track discussions
• Lunch, break times, and signals
• Electronics such as phones, tablets, and laptops
• End of day timing

This course is collaborative.


Talk to me, talk to each other.

5
minutes

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Exercise

Team Start-Up Make roughly even-sized, multi-disciplinary teams of


5 members or less.
Organize your working environment.
Post for all to see:
• The purpose of a Product Owner
• 3 things you want to learn in this class

10
minutes

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Professional Scrum at Scrum.org

For everyone Scrum Masters Product Teams Development Managers Development


Managers Owners Architects Leads Leads
Leaders Scrum Masters
Advanced Product Business Managers
Practitioners Managers Analysts Scrum Masters Advanced
Product
Advanced DB Specialists Product Owners Practitioners
Practitioners Managers
Designers
Advanced Scrum Masters
Developers
Practitioners
Testers

www.scrum.org/courses
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Professional Scrum Product Owner Course

PURPOSE AUDIENCE

• Teaches how to wring more • For those responsible for the


value out of a product using success of a software product
agile software development or service by optimizing its
with the Scrum framework. value.
• Understand the application of • Ideally, attendees have passed
Scrum theory and principles to the Professional Scrum Open
improve product management. and the Product Owner Open
assessments.

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Scrum Is Complemented by Many Practices


Empiricism & Self-Organization

• 3 Roles • Backlog Refinement • Definition of Done


• 3 Artifacts • Forecast
• 5 Events • Sprint Goal

• Burnup/Burndown Charts • Story Mapping • Velocity


• User Stories • Specification By Example • Buy A Feature
• Release Planning • Planning Poker • Relative Estimation
• Just In Time Planning

• Continuous Delivery • Impact Mapping


• Cost of Delay • Minimal Viable Product • A/B Testing
• Value Metrics • Program Management • Market Research
• Measuring/Reducing • Roadmapping • Business Modelling
• Technical Debt • User Surveys • Product Vision

… and many, many more.


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“Someone’s sitting in the shade today because
someone planted a tree a long time ago.”
- Warren Buffett

2
Agile Product Management

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Thoughts on These Companies?

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Exercise

Purpose Helps in
Pursuing Agility

Why is agility important to


your organization?

2
minutes

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Reasons to Pursue Agility

Improved
Improved
relationship with Flexibility to turn Taking advantage Early elimination
productivity and
customers, on a dime of opportunities of risk
quality
regaining trust

Always knowing Lean products that


Early realization where you are in a Easier to make Elimination reach market
of value development/ changes of waste faster and are
deployment cycle more targeted

Engaged,
Increased Return Reduced Total
empowered
on Investment Cost of Ownership
workers

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Exercise

Project vs
Product
Is it possible to deliver on
time, under budget, and
within scope yet still be
unsuccessful?
2
minutes

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Agile Product Managers Have a Product Mindset

Project Mindset Product Mindset


Success upfront defined Scope Success continuously driven by
inside out: business metrics outside in:
• Scope • User adoption/retention
• Time • Revenue
• Budget • Cost savings per feature

Leads to less business Leads to less waste,


involvement, more Budget Time more creativity, and
task management. more releases.

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The Bigger Picture
Company Vision

Business Strategy

Business Model
Product Vision
Vision Statement
Value Measurements
Product Strategy

Roadmap
Product Backlog
Release Plan

Sprint
Plan

Daily
Plan

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Exercise

Product Manager
Responsibilities

Come up with a list of


activities that are (should be)
part of Product Management.
5
minutes

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Product Management Encapsulates Many Things

Analyzing the Maximizing Identifying


Product Release Forecasting
Industry & Revenues & Customers &
Strategy Planning & Feasibility
Competition ROI Their Needs

Creating the Strategic


Business WHICH ARE COVERED BY SCRUM? Product
Case Planning

Identifying
Creating a Release Auditing Sustaining Product
Product
Requirements Roadmap Execution Results the Product Launch

Defining
Customer Naming & Outbound Product
Product
Retention Branding Messaging Retirement
Features

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Product Owner Is an Agile Product Manager

• Communicate vision and


value to the Development
Team Product Management
• Work with Development
Team to capitalize on
latest technology
Scrum Product
Owner
• Leverage Scrum for
frequent product
inspection & adaptation

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Yes, We Do Scrum. And Our Product Owner Is A…
Expected
benefits

Scribe Proxy Business Sponsor Entrepreneur Product


Not Representative Owner Role
Scrum Yes, And…

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An Entrepreneurial Product Owner

•More Collaboration (w/team & customer)


Value •Simplify product absorption
•Leverage entire Scrum Team

•Deliver frequently
Just In Time •Deliver as needed
•Embrace change

•Optimize productivity
ROI •Deliver only high value items
•Remove negative value items

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Class Project

Pick Your SERVICE FOR


Product
1 Social Media A Prisons

2 Photos B Schools

3 Travel C Sports Teams

4 Commerce D Hospitals
2
minutes 5 Entertainment E Governments

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Techniques for Modeling Business Strategy

Business Model Canvas


The original business strategy canvas

Lean Canvas
A simple problem/solution approach
Have you used
targeted for entrepreneurs and startups
any others?
Value Proposition Canvas
Helps design product and services your
customers want to buy

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Business Model Canvas
KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS

• Who are our partners? • What key activities do our value • What value do we deliver to the • How do we get, keep, and grow • For whom are we creating value?
customers?
• Who are our key suppliers? propositions require? customer? • Which customer relationships have we
• Who are our most important
• Which key resources are we • Our distribution channels? • Which one of our customers' established? customers?
acquiring from our partners? • Customer relationships? problems are we helping to solve? • How are they integrated with the rest of our • What are the customer
• Which key activities do partners • Revenue streams? • What bundles of products and business model? archetypes?
• How costly are they?
perform? services are we offering to each
CATEGORIES segment?
EXAMPLES Mass Market
Personal assistance
MOTIVATION FOR Production • Which customer needs are we Niche Market
Dedicated Personal Assistance
PARTNERSHIP Problem Solving satisfying? Self-Service Segmented
Optimization and economy Platform/Network • What is the minimum viable Automated Services Diversified
Reduction of risk and product? Communities Multi-sided Platform
Co-Creation
uncertainty CATEGORIES
Acquisition of particular KEY RESOURCES Newness CHANNELS
resources and activities Performance
• What key resources do our value • Through which channels do our CHANNEL PHASES
Customization 1. Awareness - How do we raise
propositions require? ”Getting the Job Done” customer segments want to be
awareness about our company’s
• Our distribution channels? reached?
Design product and services?
• Customer relationships? • How do other companies reach 2. Valuation - How do we help
• Revenue streams?
Brand/Status them now? customers evaluate our organization’s
Price • Which ones work best? Value Proposition?
TYPES OF RESOURCES Cost Reduction • Which ones are most cost- 3. Purchase - How do we allow
Physical Risk Reduction efficient? customers to purchase specific
Intellectual (brand, patents, Accessibility • How are we integrating them with products and services?
4. Delivery - How do we deliver a
copyrights, data) Convenience/Usability customer routines?
Value Proposition to customers?
Human 5. After Sales - How do we provide
Financial post-purchase customer support?

COST STRUCTURE REVENUE STREAMS

TYPES FIXED PRICING


• What are the most important costs inherent to our business model? • For what value are our customers Asset sale List Price
• Which key resources are most expensive? IS YOUR BUSINESS MORE really willing to pay? Usage fee Product feature dependent
• Which key activities are most expensive? Cost driven (leanest cost structure, low price value • For what do they currently pay? Subscription fees Customer Segment dependent
proposition, maximum automation, • How are they currently paying? Lending/Renting/Leasing Volume dependent
SAMPLE CHARACERISTICS Licensing
extensive outsourcing) • How would they prefer to pay? DYNAMIC PRICING
Fixed Costs (salaries, Economics of Scale Brokerage fees
Value Driven (focused on value creation, • How much does each Revenue Negotiation (bargaining)
rents, utilities) Economics of Scope Advertising
premium value proposition) Stream contribute to overall revenues? Yield Management
Variable Costs Real-time-Market

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Lean Canvas
List top 1 to 3 problems
What are the existing alternatives?
1 How do they solve the problems today?

Identify main customer(s) / buyer(s)


2 Who are the early adopters?
4 9 Create your UVP, the underlying ’Why’
3 How will you get noticed?
1 2 List top 3 features
4 How will you deliver value?

3 5
Identify a couple of possible channels
How will you build a path to customers?
8 5
Come up with revenue stream but keep it simple
6 What is the product worth to your clients?

Identify your costs and break-even point


7 How will you afford your initiative?

Identify key value indicators


7 6 8 How will you measure success?

Something that cannot easily be copied or bought


9 How will you defend against competition?

Lean Canvas is adapted from The Business Model Canvas


(http://www.businessmodelgeneration.com) and is licensed
under the Creative Commons Attribution-Share Alike 3.0 Un-
ported License
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Value Proposition Canvas
1 Customer Job(s):
4 Product & Services:
• What functional jobs are you helping your
• Buyer? customer get done?
• Co-Creator? • What social jobs are you helping your customers
get done?
• Transferrer?
• What emotional jobs are you helping your
5 Pain Relievers: customer get done?
• Produce Savings? 6 3 • What basic needs are you helping your customer
satisfy?
• Make your customer feel better? 4 1
• Fix underperforming solutions?
2 Pains:
• What does your customer find too costly?
• Eliminate risks your customers fear?
• What makes your customer feel bad?
6 Gain Creators:
• How are current solutions underperforming for
• Create saving which makes your your customer?
customer happy?

• Produce outcomes your customer


5 2 • What are the main difficulties and challenges your
customer encounter?
expects or even exceeds?

• Make your customer’s job life easier?


3 Gains:
• Which savings would make your customer happy?
• Do something customers look for?
• What outcomes does your customer expect and
what would go beyond his/her expectation?

• How do current solutions delight your customer?

• What could make your customer’s job or life


easier?

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Class Project

Business Explore a Business Strategy for your product.


Strategy Important topics to consider:
• Customer Needs
• Who Benefits
• How
• Revenue

15minutes

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Boiler Plate Warning

Boiler plate vision


statements tend to
be ignored.

Try pragmatic,
real & emotional.

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Techniques For Creating A Product Vision

Product/Vision Box
A collaboration tool for identifying the most
important features and a vision for a
product

Have you used


Elevator Pitch Template
A popular template to help organize any others?
thoughts about the vision

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Innovation Games® Product Box

Front
• Product Name
• Image(s)
• Clear Target Customer
• Clear Value Proposition

Back
• Sub-features

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Product Vision Template

FOR … [target audience]


WHO … [need, want]
[product name] IS A … [market category]
THAT … [one key benefit]
UNLIKE … [competition or current situation]
OUR PRODUCT … [competitive advantage]

* From “Crossing the Chasm” Geoffrey Moore

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Class Project

Product Vision Craft a Vision for your product:

1. Select a technique
2. Collaborate on a vision for your product
3. Prepare to pitch your product to the class

15
minutes

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Strategic Alignment Index

High Highest benefits are


most likely realized
when building these
Business products or features
Strategic
Alignment Size of bubble = TCO

Total Cost of Ownership


(TCO) and value are
Low variables used in
Low High development prioritization.
IT Strategic Source: “Measuring the Business Value of
Alignment Information Technology” , Intel Press

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Discontinuing Products Is Not What Kills You

Discontinuing a product is a healthy business decision


(unless you rely on too few products)
• Apple Newton
• Apple iPod classic
• Google Glass
• Google Wave
• iGoogle
• Google Reader
• Amazon Fire
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Exercise

Technical Product Should a Product Owner be technical?


Manager/Owner PROS CONS

5
minutes

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Great CEOs Must Be Either Technical or Financial – Forbes Article

“Technology skills do not necessarily mean hands-on


skills, though they can arise from hands-on experience. It
means simply understanding the technical state of play
in the environment in a way that you can make
exceptional decisions.”

“Technology changes suddenly expand the strategy


canvas and offer new ways of doing old things, or entirely
new things to do.”

http://www.forbes.com/sites/venkateshrao/2012/03/09/great-ceos-must-be-either-technical-or-financial/

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What About These Product Managers?

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TAKE • Product Management is essential practice for
Scrum Product Owners.
AWAY • Organizations should take on more of a Product
Mindset over a Project Mindset.
Agile Product
Management • There are many tools that can help establish a
business model, vision, etc.
• There are advantages to having a technical
Product Owner.

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Suggested Reading

“Crossing the Chasm” “The Professional Product • “The Lean Startup”


Owner” (Don McGreal & Ralph
(Geoffrey Moore) Jocham) (Eric Ries)

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“Price is what you pay. Value is what you get.”
- Warren Buffett

3
Value-Driven Development

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Exercise

Value

What is value?

3
minutes

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Value Is…

FOR-PROFIT ORGANIZATIONS NOT-FOR-PROFIT ORGANIZATIONS

The benefit to the organization, The benefit to society, not


represented in money terms, necessarily represented in
that results from the use of a money terms, that results from
product or service. the use of a product or service.

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Exercise

Delivering Value

What is the only way for a


Scrum Team to deliver
value?
2
minutes

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A Release Is Needed to Realize Value

Analyzing the industry and competition


Auditing resultsIdentifying customers and their needs
Forecasting and feasibility
Creating the business case
Strategic product planning
Product Launch Identifying requirements Release Value
Release execution
Release planning Product retirement
Sustaining the product
Creating a roadmap

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Traditional Development Delays the Realization of Value

Requirements

Design &
Architecture

Development &
Coding

Quality
Assurance &
Software Testing

Implementation

Maintenance &
Support

Source: http://pg-server.csc.ncsu.edu/mediawiki 1 Value 2


Years

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Business Value Over Time
Scrum

Waterfall

Release
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Business Value Over Time – Optimized

Release Release Release


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Exercise

Who Delivers
Value?

In Scrum, who’s
responsible for delivering
value?
2
minutes

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Exercise

How Do You • What are you currently measuring?


Measure? • Do you apply any metrics?
• Are incentives in place for any of
them?

5
minutes

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Information Value Neutrality
Sub-optimal metrics and
the law of unintended
“Once an indicator or other consequences.
surrogate measure of
performance is made a target
or incentive for the purpose of Measurement
Indicators
driving behavior, it loses the

Performance
information content that
qualifies it to play such a role.” True
Performance
Source: Robert D. Austin
Measuring and Managing Performance in Organizations

Time

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Class Project

Value How do you know your product is creating


value?
• In your team, determine how you know
your Product will create value. What
metrics will you use?
• Determine how you know if a particular
feature or enhancement is creating value.
• Is it possible to create negative value?

5
minutes

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Value Metrics*

Revenue per Employee Release Frequency Installed Version Index

Product Cost Ratio Release Stabilization Usage Index

Employee Satisfaction Cycle Time Innovation Rate

Customer Satisfaction On-Product Index Defects

Current Value Time to Market Ability to Innovate


*Adapted from Evidence-Based Management http://www.ebmgt.org/
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Exercise

Product
Variations
Commercial Use VS. Internal Use

Are different values at play?


Who is the customer and employee?
What is the impact on the Product Owner
5
minutes
role?

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Innovation Rate

What percentage of your product 2010 IT Budgets


budget is spent on:
• Building new functionality 29%
Build New
vs.
• Maintaining the existing Maintain
53%
vs. Expand
• Expanding capacity?
18%
Source: Forrester, October 2010, 2011 IT Budget Planning Guide For CIOs

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Innovation Rate. Which Is Better?

29%
52% Build New
Maintain
10% Expand 53%

38%
18%

A B
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On-Product Index

Percent of time team spends


working on product and value

Generally, higher is better

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On-Product Index

100
Working Time Available Per Project
Loss to Context Switching
80
Task switching
destroys 60

efficiency and
Percent

quality. 40

20

0
1 2 3 4 5
Number of Simultaneous Projects

Source: Gerald Weinberg, Quality Software Management: Systems Thinking V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 60

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Usage Index

100
• Build things that people will
actually use.
80
• If they aren’t, try to figure out
Percent of users using

60 why and drive more usage. If


you can’t, get rid of the feature.
40

20
Higher tends to be better
0
0 5 10

-20
Times used per time period Size of bubble = Time spent using

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Securing Success by Securing Scope?

Too many products are


designed on the premise Rarely
Never
that the initial information 45%
19%

and assumptions are valid Sometimes


16%
throughout the entire Always Often
planning horizon. 7% 13%

Features and Function Usage


Standish Group 2002

Exceeding Value
Standish Group 2014

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Installed Version Index

What percentage of your customers are on


your latest (n) release?

Monitoring
product
absorption

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The Right Metrics Can Provide Insight into Actual Value Delivered:

$1 Innovation On-Product Installed


Usage Index
Rate Index Version Index

29% 80% 35% 70%


Budget

$0.29
$0.23

$0.08 $0.06
$-

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Exercise

What Do You Do as
a PO to Influence Innovation Rate
These Metrics?
On-Product
Index

Usage Index

10
minutes
Installed
Version Index
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TAKE • Value in itself is difficult to quantify.


• Value is an assumption until validated by the
AWAY marketplace.
Value-Driven
• Key Value Indicators are metrics that indicate
Development whether value is actually being delivered.

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Suggested Reading
“Software in 30 Days” (Ken Schwaber, Jeff Sutherland) “The Elements of Value” (Almquist, Senior, Bloch)

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Insanity: Doing the same thing over and over again


and expecting different results.
- Albert Einstein

4
Scrum Theory & Empiricism

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Class Project

When Will It Be The management committee wants to know


Ready? when your product will be ready.
• What do you say?
• How would you proceed?

2
minutes

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Exercise

The Complexity of List the variables that have to be considered


Product in product development.
Development
• How predictable are they?
• What would you do to control them?

5
minutes

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Exercise

Put a slider ( ) at 0-10 for the 3 major variables in


The Predictability software development on the scale of unpredictability:
of Software
Development
0 Unpredictability 10

• ______________:

• ______________:

5
minutes
• ______________:

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The Complexity of Software Development

• Simple
everything is known
Scrum
• Complicated
more is known than unknown

• Complex
more is unknown than known

• Chaotic
very little is known

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Situation Dictates the Type of Process

DEFINED EMPIRICAL

• Given a well-defined set of inputs, • Frequent inspection and adaptation


the same outputs are generated occurs as work proceeds
every time • Outputs are often unpredictable
• Follow the pre-determined steps to and unrepeatable
get known results
Examples: Sales, marketing, theater,
Examples: Assembly line, creative writing
construction, accounting

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Empirical Processes Require Trust & Courage

Trust &
Transparency Inspection Adaptation
Courage

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Scrum Values

• The Scrum Values are the


foundation for behavior and
practices in Scrum.
• They are closely related to the
theory and first principles of
Scrum and support teams in
their work.
• The Scrum Team can always
fall back on these essentials.

Scrum Values are the life blood of the Scrum Framework.

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TAKE • Software development resides in the complex


domain.
AWAY • The best fit for complexity is the empirical process.
Empirical Process
• The 3 legs of empiricism are inspection,
Control adaptation, and transparency.
• Transparency requires trust and courage.

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Suggested Reading
“The New New Product Development Game” (Takeuchi, Nonaka) “A Leader’s Framework for Decision-Making” (Snowden, Boone)

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“If you haven’t found it yet, keep looking. Don’t


settle. As with all matters of the heart, you’ll
know when you find it.”
- Steve Jobs

5
The Scrum Framework

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Definition of Scrum

Scrum (noun):
A framework within which people can
address complex adaptive problems, while
productively and creatively delivering
products of the highest possible value.

Scrum is
• Lightweight tool for enabling business agility
• Simple to understand, yet difficult to master
www.scrumguides.org

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 82

Exercise

What Is Needed Explore the elements in the Scrum framework:


for Scrum? Roles Artifacts Events
• • •

• • •

• • •

5
minutes

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Roles: Each One Has a Specific Accountability

• Optimizes value of the Product


Product Owner
• Manages the Product Backlog

• Creates “Done” Increments


+ Development Team
• Manages itself

• Manages the Scrum process


+ Scrum Master • Coaches the Product Owner and Development Team
• Removes Impediments

= SCRUM TEAM

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 84

Exercise

Fitting the Each student, pick an identified element of Scrum,


add it to the following scheme and explain how this
Pieces Together relates to the Product Owner:

30
minutes

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Roles, Artifacts and Events in the Scrum Framework
Roles

• Product Owner
• Development Team
• Scrum Master

Artifacts

• Product Backlog
• Sprint Backlog
• Increment

Events

• Sprint
• Sprint Planning
• Daily Scrum
• Sprint Review
• Sprint Retrospective

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 86

Exercise

Exploring the You run into a Scrum Team where there isn’t
Purpose of a really a Product Owner in the team. The
Product Owner Development Team therefore creates the
Product Backlog.
What would you advise them?

5
minutes

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Exercise

Your organization has a legacy application that “works fine”


The Rewrite but is getting increasingly difficult/expensive to support. It is
Fallacy going to be re-written using modern technologies. Larry is
the Product Manager.
Larry says the users are completely happy with the existing
system and use all of its features (though usage statistics
PURPOSE are not available).
Discover the need for a Product Larry claims that the new system must “do exactly what the
Backlog
old system did.” Because of this, he says there is no need for
a Product Owner or a Product Backlog, let alone any need for
assigning business value.

5
minutes
Question: Is Larry helping or hindering? How?

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 88

The Product Owner in Scrum

Manages the Product Backlog

Expresses product features and functionality

Chooses what and when to release

Represents the stakeholders to the Team


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Exercise

• Product Backlog is ordered by the _____________, and is


Key Points for the _____________ throughout the Sprint.
Product Owner
• The _____________ sets a Sprint Goal and the
__________________ forecasts the amount of work for
the Sprint.

• The Sprint Backlog is the Development Team’s plan on


how best to meet the _____________.

2
minutes

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Exercise

Product Owner and is


• Product Backlog is ordered by the _____________,
Key Points for the Refined
_____________ throughout the Sprint.
Product Owner
Scrum Team sets a Sprint Goal and the
• The _____________
Development Team forecasts the amount of work for
__________________
the Sprint.

• The Sprint Backlog is the Development Team’s plan on


Sprint Goal
how best to meet the _____________.

2
minutes

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Exercise

• The Product Owner maximizes the _____________


Key Points for the developed each Sprint
Product Owner
• The Sprint Review is where _____________ can inspect
the Increment and the Product Owner can adapt the
_________________ as needed.

• The Retrospective is the opportunity for the


_____________ to inspect and adapt _____________.

2
minutes

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 92

Exercise
Value
• The Product Owner maximizes the _____________
Key Points for the developed each Sprint
Product Owner
Stakeholders can inspect
• The Sprint Review is where _____________
the Increment and the Product Owner can adapt the
Product Backlog as needed.
_________________

• The Retrospective is the opportunity for the


Scrum Team to inspect and adapt _____________.
_____________ themselves

2
minutes

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Exercise

Your CEO has a friend in trouble. Judi is CEO of a community


Judi Is in Trouble portal in San Francisco. The portal has over 20m
subscribers, of whom about a million are always active.
The portal has not been updated with new functionality for
over 5 months. Only news and data are updated.
There are five Product Managers, all vice presidents,
PURPOSE responsible for advertising, dating, community, vacations,
Demonstrate accountability of and classified functionality. They each receive commissions
Scrum roles
on the revenue from their respective portals.

Question: He asks you for a recommendation


5
minutes
for Judi to fix this.

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 94

Exercise

David Saves the The company is trained in Scrum. David, former


Product Manager, is now Product Owner.
Day
At Sprint Planning, David presents a Product
Backlog different from what he and the Product
Managers agreed on.
PURPOSE
Demonstrate Scrum roles
The Product Managers, attending the meeting,
express their disagreement. After hours of
bickering, they are nowhere.

5
minutes
Question: What does Scrum call for?

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The Product Owner / Development Team Relationship

Marketplace Technical Quality


Refinement
Product Quality
Technical Practices
Competition Product
Backlog

Sprint Goal Daily Scrum


Stakeholders
Product Development
Budget
Owner Definition Team
Of Done Sprint Backlog
Roadmap

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 96

Stakeholders – Who Are They and What Do They Want?

? ?
Users Influencers
? ?

Stakeholders

? ?
Governance Providers
? ?
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What Is a Scrum Sprint?

Sprints are time-boxed iterations that serve iterative-incremental


development.
• All development is done within a Sprint
• A Sprint has a constant duration of 1 month or less
• Sprint length is determined by acceptable planning horizon
• Scrum knows no phases, only Sprints
• No testing, hardening, analysis Sprints

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 98

Exercise

Sprint Goal
Goal for Sprint 17:
Complete PBI 12, 17, 18 and 21
by the end of the Sprint and fix
bug #4711

Is this a good Sprint Goal?


What are the attributes of a good Sprint
5
minutes
Goal?

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Some Sprint Goals

Make the application run Automatically clear a


on SQL Server in addition default insurance case
to Oracle using the new OCR system

Deliver a minimal set of Increase find accuracy of


administration features misspelled search terms

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 100

Sprint Goal

An objective to be • Through the implementation of the PBIs selected in Sprint


Planning
met in the Sprint • Providing guidance to the Development Team

Allows flexibility in
• Allows wiggle room for exact implementation of PBIs
delivering the • Although the Sprint Goal is fixed
Increment
Is sacrosanct • As the Development Team works, it keeps this goal in mind
throughout the • Each Daily Scrum assesses the Team’s progress toward
meeting the Sprint Goal
Sprint
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Sprint Planning Meeting Flow

Development Team Definition of Retrospective


Product Backlog (Velocity + Capacity) “Done” Commitments

1 What
Analyze, evaluate and select
Product Backlog for Sprint.
Sprint Goal gives direction
2 How
Decompose into actionable plan
Enough Work is decomposed

Sprint Goal + Forecast + Sprint Backlog

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Cancellation of Sprints

• Sprints may be cancelled early, i.e. before the time-box expires.


• Only by the Product Owner
• Prefer adjusting Sprint Scope
• Reasons to cancel may include changes in competition, business,
or technology feasibility.
• After a Sprint cancellation, re-plan the Sprint.

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Exercise

Connect the statements to the Scrum events.


A Sprint Is a Cross out incorrect statements.
Feedback Loop
Inspect the Increment A demo to promote the
product to the stakeholders
The Product Owner informs
the team of the Velocity
required for the next Sprint Inspect how the Sprint went
Sprint Review with regards to people and
relationships
Figure out how to make the
next Sprint more enjoyable

Inspect marketplace changes


The Scrum Team inspects and potential use of the
itself product

5
Sprint
Inspect Product Backlog and Retrospective
likely completion dates Adapt the Product Backlog

minutes
Adapting the Definition of
Done to increase product A status meeting for the
quality steering committee

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 104

Exercise

Connect the statements to the Scrum events.


A Sprint Is a Cross out incorrect statements.
Feedback Loop
Inspect the Increment A demo to promote the
product to the stakeholders
The Product Owner informs
the team of the Velocity
required for the next Sprint Inspect how the Sprint went
Sprint Review with regards to people and
relationships
Figure out how to make the
next Sprint more enjoyable

Inspect marketplace changes


The Scrum Team inspects and potential use of the
itself product

5
Sprint
Inspect Product Backlog and Retrospective
likely completion dates Adapt the Product Backlog

minutes
Adapting the Definition of
Done to increase product A status meeting for the
quality steering committee

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This is a collaborative Flow of the Sprint Review Meeting
working session, not a
demonstration.

Product Current Business


Sprint Backlog Increment Conditions

Review, discover & rearrange info

Updated Product Backlog

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 106

Exercise

Exploring
Done

Why would the Product


Owner care about the
Definition of “Done”?
5
minutes

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Incremental Requires Transparency

• Increment must be transparent DONE


to Product Owner and
stakeholders
• Increment must be Done
• Increment must be potentially
shippable, or usable by
stakeholders
• Adhere to the Definition of
Done

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Increment Grows Over Time Iteratively – Always Done


√√
√ √√
√√ √√
Incremental Iterative & Incremental

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Sprint Retrospective

• Scrum Team inspects how the


last Sprint went
• People & Relationships
• Process
• Environment (tools)
• Quality
• Scrum Team selects top
actionable improvements to
implement in next Sprint

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 110

Exercise

Joe is Product Owner for a successful web-based product.


Can One Product Joe attributes the success to spending much time meeting
Owner Possibly Do with local users to hear about their needs, and reviewing
It All? user logs that show how people are using the product.
Over the past 2 years the product has grown from a regional
user base of around 1,000 users to 2 million users nation-
PURPOSE wide. But, usage is declining.
How to scale the Product Owner Joe considers hiring a Junior Product Owner for the team-
role
facing activities like writing user stories and answering
questions so he can keep reaching out to consumers directly
to better identify user needs.

2
minutes
Question: What problems do you see? What
would you do?

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One Product Owner Can Do It All, with Help and Thought

Job requirements remain largely the same, but method for fulfilling
those requirements must evolve with the needs of the product.
• Establish a solid vision
• Empower the Development Team to help manage the Product
Backlog
• Only get involved in specific decisions if team needs help
• Build the ability to do your work into the product so you can scale
the product growth

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 112

Examples of Building Abilities into the Product

Financial gateway for electronic payments. Each user


has an allocation of points to “bid” on enhancements
in the support forum.

Financial aggregator. Its customer service portal has


discussion rooms for individual problems. Customers
collaborate on solutions and share an electronic
“mood” to indicate the status of the problem.

Office 2016 – Customer Feedback

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Product Owner Role

Who cannot be a Product Owner?


• A committee

What risks could emerge if the PO is a:


• Project Manager?
• Line Manager?
• Scrum Master?
• Development Team member?

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 114

TAKE • Scrum enables empiricism for an agile business.


• A Sprint is a window of opportunity.
AWAY • The length of the Sprint controls risk
The Scrum • Every Scrum role has clear accountability.
Product Owner
• The Product Owner is the value optimizer.

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Suggested Reading

“Scrum – A Pocket Guide” “Product Mastery” • “Scrum Product Ownership”


(Gunther Verheyen) (Geoff Watts) (Robert Galen)

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 116

“If you pick up a starving dog and make him


prosperous, he will not bite you. This is the principle
difference between a dog and a man.”
- Mark Twain

6
Product Backlog Management

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Specification
Levels of Specification How

Backlog
Specification

Sprint
by Example Examples Harder to define upfront
Very specific

Acceptance
Criteria
Story
Mapping
Stories /
Product Backlog items

Readiness

Product Backlog
Impact
Mapping
Walking Skeleton / Epics /
Coarse Product Backlog items

Business
Modeling Key Activities / Backbone
VISION

High Level Product Backlog items

Value Propositions

Product Scope
Easier to define upfront
Customer Needs More abstract
Product Backlog Item
Why
What
Outcome
V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 118

Characteristics of a Product Backlog

• Single source for valuable items to deliver


• Transparent to Scrum Team & Stakeholders
• Ordered based on value, dependencies, and risk
• Product Backlog items are estimated
• A vehicle for starting conversations
• May reference other artifacts like:
• Specifications, Mockups, Architecture Models

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Use Product Backlog to Maintain a Roadmap

0-6 Months 6-12 12+


Future
Months Months
Roadmaps
enable sales, Requirement
Requirement Idea Fuzzy Idea
If nothing
changes,
then…

marketing and
Sprint 1
Requirement
Requirement

other project
Idea
Requirement
Requirement

management Sprint 2+3


Requirement
Requirement
domains. Requirement

Sprint 4-… Requirement

Requirement

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 120

Valid Product Backlog Items

Non-
Feature
Functional Experiments User Stories
Requests
Requirements

Bugs/Defects Use Cases Capabilities …

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The Three C’s of User Stories

Card

Conversation

Confirmation

source: Ron Jeffries 2001

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User Story

User Story is a promise for a conversation.

It is more about the conversation than the User Story itself. The
conversation provides the underlying reason for why something
should be done.

The card is a reminder.

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Popular User Story Template

TITLE: … TITLE: Derive Racing Time

As a … [role, persona] As a casual Runner

I want … [behavior] I want to be able to derive the race time for a


new distance based on past times
So that … [why, the reason/value]
So that I can better plan my training

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 124

If Not Precise Enough, Split Them

As a frequent traveler
I want to book a hotel
As a user reservation

I want to book a hotel


reservation As a father
I want to book a hotel
reservation

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Upcoming Product Backlog Items Are Refined to Ready
Requirement
Requirement
• Top ordered PBIs are well understood
Sprint 1
Requirement and easily selected in Sprint Planning.
Requirement
Requirement • Product Backlog is continuously refined
Sprint 2+3 Requirement to increase understanding, granularity
Requirement
Requirement and transparency.
Requirement • Refinement usually consumes no more
than 10% of the capacity of the
Sprint 4-…
Requirement Development Team.
Requirement
• Whether the PBIs are ‘Ready’ is
determined by the Development Team.
V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 126

Acceptance Criteria

TITLE: Derive Racing Time


Acceptance Criteria
• Calculated time is rounded to next half or full
As a casual Runner minute for all distances of less than 1 hour
racing time
I want to be able to derive the race time for a • Calculated time is rounded to next minute for all
new distance based on past times distances of more than 1 hour racing time
• Time of calculation is < 1 second
So that I can better plan my training • Maximal allowed distance is a Marathon
• Shortest allowed distance is 1km

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Specification by Example

TITLE: Derive Racing Time


Acceptance Criteria
• Calculated time is rounded to next half or full
As a casual Runner minute for all distances of less than 1 hour
racing time
I want to be able to derive the race time for a • Calculated time is rounded to next minute for all
new distance based on past times distances of more than 1 hour racing time
Examples

• Time of calculation is < 1 second


So that I can better plan my training • Maximal allowed extrapolated distance is a
Marathon

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 128

Experiments: A/B Test and Technical Spike

TITLE: Upfront Postage increases Sale TITLE: Does library XYZ meet our needs
Implement library XYZ as a proof of concept to
Determine if showing the postage for each see if it:
preselected catalog item increases sales • has Right data precision
compared to only showing the total postage on • it meets our performance requirements
the order confirmation page. • is threadsafe

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Class Project

Retrospective – Executives and other stakeholders are having


“Stakeholders problems understanding the vision of your
Need More product, or even its next release, given the
Information” state of your Product Backlog.
What should we do to improve?

5
minutes

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 130

Story Mapping

Product Backlogs are one-


dimensional
• This makes it difficult to see the
workflow, relationships, and
dependencies
Story maps help visualize and plan
upcoming work
• They foster collaboration by
providing a different perspective

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Class Project

Create a Product Create a preliminary Product Backlog for your


Backlog team’s Product.
• Review both functional and non-functional
items
• Create a card for each Product Backlog
Item
Prepare to present your Product Backlog
to the class.
15
minutes Do not strive for perfection, just do the best you can!

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 133

Product Backlog Supports Emergent Architecture Development

• Architecture and infrastructure are high ordered non-functional


requirements.
• Or included in the Definition of “Done.”

• Every Sprint must still deliver at least some valuable business


functionality.
• To prove that architecture or infrastructure works
• To prove to customer that work they care about is taking place
• Basis for estimating

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Architecture Changes
Infrastructure / Architecture Functionality
100%

80%

60%

40%

20%

0%
Sprint 1

Sprint 2

Sprint 3

Sprint 4

Sprint 5

Sprint 6

Sprint 7

Sprint 8

Sprint 9

Sprint 10

Sprint 11

Sprint 12
V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 135

Exercise

How Do You Why is it important that the Product Backlog


Prioritize Work? is always ordered?
• Discuss in your team how your company or
product area prioritizes work?
• How do you resolve conflicts that occur
when people think their “stuff” is more
important than other people’s “stuff”?
• Do you quantify the results?

5
minutes
• How do you handle dependencies?

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Requirements Can Be Ordered on Many Factors
SIZE
Size Risk
• Smaller Large • Feature
• Less uncertainty Refine • Technical
• Re-orderable • Dependencies
• Market Trends
Do First
Right

VALUE Low High Good Silly


RISK

Value
• ROI
• Existing Customers
• Prospects
• Cost of Delay

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 137

Techniques for Product Backlog Ordering & Value


500 Value Points
Allocate points from a fixed total
Business Value Poker (aka Planning Poker)
Assign relative value points (instead of size)
Buy a Feature Have you used
Innovation Game using money
20/20 Vision
any others?
Innovation Game for simple ordering
Thirty Five
Collaboration activity for ordering

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Class Project

Product Backlog Order your Product Backlog:


Ordering 1. Select a technique for ordering by Value
2. Add value to each PBI card
3. Sort PBI cards

Prepare to present your Product Backlog


to the class.

10
minutes

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 139

Map Product Backlog Items to Value Proposition


size
1 2 3 5 8 13 21 Value Proposition Metric

This anticipated value


is not addressed

NONE

Product Backlog Item

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TAKE • Product Backlog holds all the work for the Product.
• Product Backlog gives transparency.
AWAY • Product Backlog is a living artifact.
Product Backlog • There are many techniques beyond Scrum to help
Management create and order Product Backlogs.

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 141

Suggested Reading

“User Stories Applied” “Impact Mapping” • “User Story Mapping”


(Mike Cohn) (Gojko Adzic) (Jeff Patton)

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“The most reliable form of self-marketing is to have a
long history of stunningly great work, shipped.”
- Seth Godin

7
Release Management

@ScrumDotOrg V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 143

A Release Serves to Actually Deliver Value

Ideally…

New features or
enhancements

Less ideal…

Fixes, updates and


corrections
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Some Reasons Are Better Than Others (For Planned Releases)

Customer Request • Something a customer requested that will create value for them

• Changes that take advantage of an opportunity to gain market


Market Opportunity share or grow the market

Required Release • Made to comply with a legal requirement


Better

• Meets agreement to deliver specific functionality to a customer,


Commitments prospect, or partner

• Changes to ensure offering matches or exceeds competitors’


Competitive Response capabilities

• Commitment to the market to release new features and/or fixes,


Major Release driven by a certain schedule

Maintenance • Correction of defects

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 145

Release Strategies

MAJOR MINOR • FUNCTIONAL

• Many large changes • Broad changes • Individual functionality


• Infrequent (often aligns • Pre-scheduled (often • Continuous delivery
with organization timelines) aligns with Sprint boundaries) (often during a Sprint, even daily)

• Freezes other work • Often not cohesive • Immediate value


• High customer • Often bug fixes and • Low customer
absorption costs patches absorption costs
• High business risk • Less business risk • Minimal/no business
risk
Different release processes involve different investment into testing
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Formulating a Release Plan Identify
Identify major expected
requirements capabilities
Develop a
of team
release goal
(MVP)

Have enough Create initial Find/Build


people critique Identify risks Product Development
the idea Backlog Team

How is this different for


Possible date Major, Minor, or
and cost
Start Functional Releases?
Product Development

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 147

Customer Absorption Is One Constraint

Customers can’t necessarily use everything you give them. Focus on


what it takes for them to get value from your product.
• Additional hardware
• Pilots
• Training
• Installation
• Data migration

Source: SAP SAPPHIRE NOW keynote by SAP Supervisory Board


Chairman and co-founder Hasso Plattner, May 19, 2010

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Build Plan as Needed

Already funded, • Trust and history exist


underway project • Detail inventory for next several Sprints
Minimizing Inventory

• Trust and history exist


Unfunded, new

Funding in Place
• Detail inventory to level needed to Detail initial Next several
project with history estimate based on history Release Sprints

Detail
Unfunded, new • Trust has not been built Detail all
Inventory for
project without • Detail inventory to level of reasonable Inventory
history likelihood of meeting initial plan initial plan
Delivery History & Trust
• Distrust exists
Unfunded, new
• Detail all inventory and build trust during
project with distrust project

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 150

Techniques for Estimating Product Backlog Size


Planning Poker
Assign relative story points

T-Shirt Sizing
Assign xs, s, m, l, xl, xxl sizes instead of points
Have you used
Affinity Estimation
Size PBIs by constantly comparing to others any others?
Counting PBIs
Assume PBI sizes will average out

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Class Project

Estimating Size Size your Product Backlog:


1. Select a technique for sizing
2. Write the relative size on the PBI
3. Total the estimated sizes
Prepare to present your Product Backlog
to the class.

10
minutes

V4.3 © 1993 – 2018 Scrum.org All Rights Reserved 152

Velocity Is an Option to Measure Progress


Velocity is an
indication of the
ability to turn 40

Last Observation = 36
Product Backlog 30
Average (Last 8) = 33

into shippable Average (Worst 3) = 28

functionality 20

across time, or
for a specified 10

price. 0
1 2 3 4 5 6 7 8 9
Sprints

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Exercise

When Will Item At a Sprint Review one of the PRODUCT BACKLOG


stakeholders wants to know Size: 13
“A” Likely Ship? when item A is likely to ship. Size: 21
Size: 21
How would you deal with this Size: 3
question? Size: 5
Size: 1
• Average Team Velocity = 33 Size: 8

• Sprint Length = 2 weeks Size: 13


A Size: 3
Size: 21
Size: 13

2
minutes

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Exercise

What Is likely to At a Sprint Review one of the PRODUCT BACKLOG


stakeholders wants to know
Ship in 8 Weeks? what is likely to ship in 8
Size: 13
Size: 1

weeks. Size: 2
Size: 8
How would you deal with this Size: 5

question? ? Size: 13
Size: 3
• Average Team Velocity = 18 Size: 13

• Sprint Length = 2 weeks Size: 5


Size: 8
Size: 2

2
minutes

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Monitor Progress Balancing Date or Feature Targets

PRODUCT BACKLOG
70 How likely are we to
meet the ship date? Size: 13

60 Size: 1

Cone of Size: 2
50 Uncertainty Size: 8
Story Points

Size: 5
40
Size: 13

30 Size: 3

Size: 13
20
Size: 5

10 Size: 8

Size: 2
0
1 2 3 4 5 6
Sprint

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Undone Work + Technical Debt Uplifts the Work Baseline


• Lack of Automation
Perceived Work
• Build
Actual Baseline • Unit tests
Undone Work
• Acceptance tests
Perceived Baseline Technical Debt
• Deployment
• …
• Code Quality
Actual Work Required • Highly coupled code
• High code complexity
Actual Work • Business logic in the
Trajectory wrong places
• High cyclomatic complexity
Product • Duplicated code or
Backlog modules
Undone Work • Unreadable names or
Perceived Work algorithms
Trajectory & Technical Debt
• …
Accumulation

Time

Remember: Undone Work does not accumulate linearly


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Exercise

Good Velocity In your team, decide what is a desirable


velocity.
What can you do for teams that don’t have
the velocity you want?

5
minutes

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Class Project

Your team thinks they can deliver ~11 points in one Sprint
Refinement (Velocity). Sprints are two weeks.
• Refine the PBIs of the two upcoming Sprints into PBIs with
no greater relative size than 3 points.
• Suggest a candidate Sprint Goal for Sprint 1.

Present your Release Plan to the class.

Sprint 1 Sprint 2 Sprint 3 & 4

10
Requirement
Requirement
Requirement
Requirement
Requirement
Requirement
Requirement
Requirement

Requirement

Requirement

Requirement

minutes

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Class Project

Your client needs to make significant investments in getting


Urgency this system installed and replacing their old one.
You have a predicted velocity of 11 points per 2-week Sprint.
Assume you have a team of 6 people and that their cost is
~$10,000/month each.

Your client wants to know:


• Can it be done?
• When will it be done? (So they can cancel existing
vendor contracts)

10
minutes
• How much will it cost? (So they can secure a
budget)

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Class Project

Closing

Discuss within your team


what this means to you, your
customers, and the way
you work.
5
minutes

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TAKE • Product Backlog holds all information needed for
forecasting, planning, and reporting.
AWAY • Increasing release frequency of new features or
enhancements is a competitive advantage.
Software
Releases • There are many techniques beyond Scrum to help
size Product Backlogs.

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Suggested Reading

“Agile Estimating and Planning” (Mike Cohn)

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“Nothing focuses the mind like a noose.”
- Mark Twain

8
Closing

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Exercise

Product Owner List the skills and traits a Product Owner


Skills needs to be effective and successful.
SKILLS TRAITS

10
minutes

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Three Things You Wanted to Know (Re-Visit)

• Did we cover what you absolutely wanted to know?


• Did we set some questions aside that we still need to go into?

P
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Exercise

It’s Your Call I’ve had 2 great days of discovery about


being a Professional Scrum Product Owner.
But, when I go back to work I still have to deal
with many old ways of working (dates,
actuals, predictions).

Identify 3 actionable ideas or


improvements from this class you
will try.
10
minutes

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Inspect Your Knowledge – Feedback in 14 Days or Less!

Over the past 2 days, you have learned the importance of inspection,
adaptation, and fast feedback cycles. To reinforce these concepts, if
you attempt the Professional Scrum Product Owner I (PSPO I)
certification assessment within 14 days and do not score at least 85%,
you will be granted a 2nd attempt at no further cost.

• Test your basic knowledge of Scrum and learn from immediate feedback by
taking an Open assessment:
www.scrum.org/assessments/open-assessments
• Use the Open assessments to prepare for Level I assessments

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Your Scrum.org Profile

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Feedback

Feedback is important, and we take it seriously. Your feedback


helps us to continually inspect and adapt our courses.

Share your feedback on the class you attended at:


www.scrum.org/feedback

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Scrum.org Is a Community. Connect.

Forums Twitter LinkedIn Facebook RSS


Scrum.org @scrumdotorg LinkedIn.com Facebook.com Scrum.org/RSS
/Community /company/Scrum.org /Scrum.org

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Thank You!

KEEP
CALM
AND

SCRUM
ON

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