Advance Product Owner Reference Guide

Focus Area - PSPO I

Scrum Framework - Rules and roles of Scrum per the Scrum Guide.
Scrum Theory and Principles - Good understanding of Scrum theory, how it is founded on empirical theory,
and the principles and values of Scrum.
Cross-functional, Self-organizing Teams - Scrum Teams are different from traditional development groups.
The paradise and nature of a cross-functional and self-organizing team promote exibility, creativity, and
productivity. They choose how to best do their work and have all competencies needed to accomplish it without
depending on others outside of the team.
Maximizing Value - The Product Owner is responsible for maximizing the product's value and the Scrum
Team's work. Understand different angles of value from a de nition of measuring value and also strategies to
optimize value.
Product Backlog Management - The Product Backlog is the single source of requirements and changes for the
product. To maximize value, best create, clarify and maintain the Product Backlog to plan releases, report, and
capitalize on unforeseen business opportunities.
Coaching and Facilitation - Overall behavior of Scrum masters is very different from project managers or team
leaders in traditional environments. Scrum Masters are servant leaders who coach and facilitate teams and
organizations in understanding and applying Scrum. Best techniques help teams and organizations discover what
works best for them.
Focus Area - PSPO II
Understanding and Applying the Scrum Framework: Empiricism, Scrum Values, Scrum Team, Events,
Artifacts, Scaling.
Managing Products with Agility: Forecasting & Release Planning, Product Vision, Product Value, Product
Backlog Management, Business Strategy, Stakeholders & Customers.
Evolving the Agile Organization: Organizational Design & Culture, Portfolio Planning, Evidence-Based
Management.

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Product Management
1. Successful Product Owners keep customer satisfaction in the front of their minds. They
understand the needs and wants of the end-users.
2. A product is a vehicle to deliver value. Every product has a producer and a customer. The
customer may be just the user, the buyer, or both.
3. Product Management is an essential practice for the Product Owner.
• Project Mindset de nes success from the “inside out” using internal measurements like scope,
time, and budget. This leads to less business involvement, more handoffs, more people
management, and more task management.
• Product Mindset is an “outside-in” approach that uses external measurements like User
adoption/retention, Revenue, and Cost saving per feature to actively guide the development of
the product to maximize value. Bene ts are
Encourages more frequent releases which result in quicker feedback from the marketplace.
Communicates objectives instead of tasks, teams get more creative with their solutions and
take more ownership over their plans.
Eliminates waste by depending less on task assignments, reporting, and management
decisions.
4. The three V’s
• Vision creates Transparency.
• Value provides something to Inspect.
• Validation causes Adaptation.
Process validation is about inspecting and adapting how the Scrum Team is working.
Product validation is about inspecting and adapting what the Scrum Team is building.
5. Product Development is complex. The best way to deal with complexity is to work empirically
(apply Empiricism).
6. Reduce risk by releasing small increments frequently.
7. Perform experiments to validate the needs of the end-users. You can use practices like:
• MVPs (Minimum Viable Products).
• Landing Pages (Measure pre-order or signup conversion rate).
• Surveys, and more.

Product Owner Stages

1. Based on the authority and responsibility, there are 5 stages of the Product Owner.
• The Scribe - Someone on the technology side with little to no decision-making ability, who has
been tasked with capturing requirements.
• The Proxy - Someone seen as a representative of the business like a business analyst or system
analyst who may create an unnecessary indirection.
• The Business Representative - Someone from the business side with limited autonomy over
product management.
• The Sponsor - Someone who spearheaded the initial business case, acquired the budget, and has
the trust and the mandate to make nancial and product decisions on the spot.
• The Entrepreneur - Someone who is spending their own money to fund the development of the
product. They have complete responsibility for overall product management decisions for both
business and IT strategy.
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2. Both the scribe and proxy are on the receiving side of what goes into the product. They get told
what to do. At best, they work out the details.
3. The Business Representative, Sponsor, and Entrepreneur are more on the initiating side of the
product. Because of their deeper business understanding and their two-way communication, they

Figurestronger
develop 1-11 Summary of Product
customer empathy. Owner allows
This empathy role types
them to initiate rather than simply
receive the right requirements.
4. To evolve to levels of Sponsor and Entrepreneur, you have to be proactive and take ownership of
the success of the Product.

Misunderstood Stances of Product Owner

1. The Clerk - No authority. Never says “No”. All requirements go to the Product Backlog.
2. The Story Writer I often find
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4. The Project Manager - Micromanages the developers. Breaks Scrum Rules (e.g. Daily Scrum as a
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6. The Gatekeeper - The single point of contact. Reduces transparency. May dilute feedback.
more representative of the business people? Could a proxy start
learning more about the business side? Could a business
Product Owner Stances
representative ask to be more involved with budgeting and
The Visionary:
strategic
1. Great POs applydirection?
the VisionaryIfstance.
the answer
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of these questions,
time. Usually, this happens
then we should ask ourselves if we have the right person in the
when the Scrum Team acquires a better understanding of the customers and their needs.
• Champion the future state, possibilities, goals, and chances.
Product Owner role.
3
 • Communicate the product vision, strategy, and Product Goal.
• Understand value and pricing models.
2. By communicating the Product Vision early and often, the PO creates better alignment between
the Scrum Team and Stakeholders.
3. Having a compelling Vision Statement is inspiring and motivating.

Customer Representative:
1. Great POs apply the Customer Representative stance. The PO focuses on Customer Satisfaction
& Product Usage. These two metrics help us understand if the value (to customers) is being
delivered.
• Focus on understanding customer problems, pains, and opportunities.
• Get into the mindset of the customer, place yourself in their world, and understand their needs.
• Deliver value by connecting product features to the customer outcome.
2. The Satisfaction Gap is the difference between what customers experience now and their
desired experience. The bigger the gap, the more UV (Unrealized Value) there is.
3. Great POs focus more on outcomes (what the customer experiences) rather than outputs &
activities (# of releases, time spent writing code, velocity, etc.)

Decision Maker:
1. Great POs apply the Decision Maker stance.
• Focus on making better decisions.
• Navigate con icting customer feedback.
2. Be decisive but not arrogant. Back your decision with information. Delayed decisions often lead to
delayed delivery of value.
3. Delegate responsibilities. Allow members of the Scrum Team to make decisions. However,
you must know what these decisions have led to because you are still responsible.
4. If the organization the Scrum Team works in hasn’t adopted the Agile way of working, the PO
should collaborate with the SM. The goal is to reach level 4 (Sponsor) or 5 (Entrepreneur) in the
maturity curve.

Experimenter stance:
1. Great POs apply the Experimenter stance.
• Focus on innovation through experiments, hypotheses, tests, learnings, data, and validation of
value.
• Understand the Product Owner’s role in a scaled environment. Every feature or product
requirement is a hypothesis about value. The only way to know for sure is to validate it with the
marketplace.
• The Experiment Loop (from the EBM Guide) helps the organization move toward Intermediate
and Strategic Goals.
Form a hypothesis for improvement.
Run your experiments.
Inspect your results.
Adapt your goals and approach based on what you’ve learned.

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 2. Do one (or few) experiments at a time. You do not want too many moving parts while
experimenting.

In uencer stance:
1. Stakeholder Management is a process and one of the most important responsibilities of the
Product Owner.
2. To manage stakeholders effectively conduct a Stakeholder Analysis.
• First, identify your key stakeholders.
• Second, prioritize your stakeholders.
• Third, understand your stakeholders.
• Use tools and models like DISC, Spiral Dynamics, and more.
3. Lead the stakeholders, customers, and Scrum Team, to move in the right direction and to change
their minds, when necessary.
4. Learn how to create a stakeholder management strategy.

Collaborator stance:
1. Practice Active Listening. Listen to understand and respect different opinions. Seek collaboration
with stakeholders and the Scrum Team.
2. Be Sincere and Appreciative of the work others do.
3. Be Transparent and Open. This will help you build trust. Trust is the cornerstone of the Scrum
Values.
4. Work beyond the Scrum Team including contracts, nance, budgeting, and governance in an
agile way.

Product Vision & Product Strategy

1. A product vision describes the long-term desired outcome for your product. Effective vision
• Inspiring - All who help to implement it should feel inspired.
• Strategically sound - That is, you have a decent shot at making it happen.
• Documented - You need to write your vision down to make it work.
• Communicated - Not only do you have to document your vision, but you have to tell people
about it too.
2. A good vision needs to be Focused, Emotional, Practical, and Pervasive. It will not emerge over
time.
3. The Product Owner is accountable for creating and communicating the Product Vision.
4. The Product Strategy answers the question: “How will the product succeed?”
5. The Business Strategy answers the question: “How will the business succeed?”
6. Sprint Planning offers an excellent opportunity to remind your team of the vision.
7. The Sprint Review is an opportunity to reinforce the vision not just with your team, but with your
stakeholders.
8. The Sprint Retrospective is your opportunity to inquire about the effectiveness of your vision
communications.

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 Visualize The Product Strategy
1. The Product Vision Board allows you to create a simple Agile Product Strategy. And it has 5
sections:
• Vision
• Target Group
• Needs
• Product
• Business Goals
2. Always put the users and their needs rst. Collaborate with the rest of the team and key
stakeholders when working on the Product Vision Board.

Visualize The Business Model

1. The Business Model Canvas describes, designs, or invents business models systematically. It is a
great tool to help the Scrum Team and Stakeholders understand a business model in a
straightforward and structured way.
2. The Business Model Canvas consists of 9 sections (or building blocks).
• Customer Segments - Who will get value from your product? Who is your buyer? Who is your
consumer? - Individual users, groups, personas, or any relevant stakeholders.
• Value Propositions - Who are your customers? What are their needs, and how does your product
address them?
• Channels - Channels are how you intend to get your value propositions to your customers.
Advertising? Word of mouth? Search engine? Training?
• Customer Relationships - This is about retaining your customers and possibly introducing them
to add value propositions. How do you keep them coming back for more? Should you put a
loyalty program in place? Maybe a newsletter?
• Revenue Streams - How do your value propositions generate revenue? What and how much are
your customers willing to pay? Licensing? Membership fees? Advertising?
• Key Activities - Uncover the activities you will have to invest in. What will you need to do to
make these value propositions a reality? This involves due diligence activities such as market
research, legal feasibility, and possibly even patent registration.
• Key Resources - What you need to have. This includes people with the right skills, equipment,
of ces, tools, and many more.
• Key Partners - To better focus on your customers and value propositions, there are some things
you simply should not do yourself even if you have the ability and money to do them e.g.
hardware providers, service providers, distributors, and similar partners.
• Cost Structure - Identify major investments needed to make this product a reality. Take this
opportunity to make these costs explicit.

Visualize Product Goals

1. Product Roadmaps visually communicate the steps (Product Goals) toward the Product Vision.
2. Use Product Roadmaps to stay focused on the Product Goals and Outcomes.
3. Collaborate with the stakeholders when creating a Product Roadmap.
4. Product Roadmaps increase transparency and alignment.

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5. Product Roadmaps are not static. Inspect and adapt as you go.
6. Various formats for Product Roadmapping exist, the most famous are:
• The Goal-Oriented Product Roadmap
• The Now-Next-Later Roadmap
• The Story Map

Cone of Uncertainty
• The "cone of uncertainty" is about the fact that uncertainty is highest at the beginning of the
project, and reduced as we progress. This uncertainty can be about the duration, requirements, etc.

KPIs (Key Performance Indicators), KVAs (Key Value Areas) & KVMs (Key
Value Measures)
1. The organization knows that a product built through Scrum is successful by releasing often,
updating key performance indicators (KPIs) on value after every release, and feeding this
information back into the work on the Product Backlog.
2. Scrum Teams deliver products iteratively and incrementally, maximizing opportunities for
feedback. If a product isn't released, the opportunity to capture user and market feedback is lost.
3. There are four KVA categories that a Product Owner considers to measure and track the creation
and delivery of value to the marketplace.
4. Current Value reveals the organization’s actual value delivers to customers and stakeholders in the
marketplace at present. Current Value establishes the organization’s current context but has no
relevance to an organization’s ability to sustain value in the future. It helps to understand the value
that their customers or users experience today.
• KVMs for CV are Revenue per Employee, Product Cost Ratio, Employee Satisfaction,
Customer Satisfaction, and Customer Usage Index.
5. Unrealized Value reveals the potential future value that could be realized if the organization met
the needs of all potential customers or users. Decrease UV (future bene ts) by increasing CV
(present bene ts).
• KVMs for UV are Market Share, Customer or User Satisfaction Gap, and Desired
Customer Experience or satisfaction.
6. Time-to-Market evaluates the organization’s ability to deliver new features, functions, services,
and products. Without actively managing Time-to-Market, the ability to sustainably deliver value in
the future is unknown. Improving T2M helps improve the frequency at which an organization can
potentially change CV.
• KVMs for T2M are Build and Integration Frequency, Release Frequency, Release
Stabilization Period, Mean Time to Repair, Customer Cycle Time, Lead Time, Lead Time
for Changes, Deployment Frequency, Time to Restore Service, Time-to-Learn, Time to
remove Impediment and Time to Pivot.
7. Ability to Innovate the effectiveness of an organization to deliver new capabilities that might
better meet customer needs. It helps in improving the value that its products or services deliver to
customers or users.
• KVMs for A2I is Innovation Rate, Defect Trends, On-Product Index, Installed Version
Index, Technical Debt, Production Incident Count, Active Product (Code) Branches,
Time Spent Merging Code Between Branches, Time Spent Context-Switching & Change
Failure Rate.

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 Value Delivery
1. Value could be dif cult to de ne and it has different aspects. However, as POs we have to focus on
these de nitions:
• Value is the nancial bene t the organization receives.
• Value is the societal bene t the society receives.
• Value is customer satisfaction or happiness.
• Value is employee satisfaction or happiness.
2. Value for customers is an assumption until validated with those customers.
3. Increase the chance of Product Success and Value Delivery by using Customer Personas & The
Value Proposition Canvas. These practices allow you to position your product around the needs
and wants of your customers.

Product Lifecycle & Key-Value Areas

1. The Product Life Cycle has 4 stages - Introduction, Growth, Maturity, and Decline.
2. If a Product is near the end of its life cycle (low UV and high CV), keep maintaining it, but look
for opportunities (new products) for future growth (high UV).
3. Improve your Product Cost Ratio, T2M and A2I by eliminating waste and non-value-added
activities from the product development and delivery process.
4. If a Product is during a Decline Stage (sales are declining), do not rely on marketing and pricing
tactics to generate more sales. Look for new opportunities.
5. Improve the organization’s T2M by releasing small increments that deliver new or improved
customer outcomes.

Pricing Strategies & Competitors

1. Many Pricing Strategies exist. Some common ones are:
• Freemium Pricing
• Price Skimming
• Market Penetration Pricing
• Premium Pricing
• Economy Pricing
2. When making decisions regarding price increases or decreases, POs consider many factors such
as:
• Competitors’ pricing
• Market Share
• Customer Satisfaction
• Unmet Needs
3. Improved customer outcomes (value) are a valid reason for a price increase.

Releases And Validation

1. To validate customer value, it is recommended to release early and often.
2. The Product Backlog contains all information related to release planning.
3. Use MVPs (Minimum Viable Product) to validate product ideas.
4. Run small experiments to validate customer needs.
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5. Not all releases are equal, some of them are:
• Minor
• Major
• Desirable
• Non-desirable
6. Scrum doesn’t tell us when to release. The Product Owner is NOT the release decision-maker
anymore.

Stakeholder Management
1. Always acknowledge the viewpoints of stakeholders but a Product Owner cannot satisfy
everyone.
2. Sometimes, you have to say “NO” to stakeholders. Be decisive and respectful.
3. When appropriate, help stakeholders by running small experiments to validate their ideas.

Product Backlog Management

1. The Product Owner is accountable for Product Backlog Management.
2. In Scrum, the Product Backlog is the plan for the Product.
3. The Product Owner orders the PBIs in the Product Backlog to maximize the value of the Product.
4. While ordering, the Product Owner considers value, risk, cost, and dependencies.
5. It is a myth that the Product Owner has to write all PBIs in the Product Backlog. The Product
Owner may choose to delegate.
6. The Product Backlog should be transparent to all Scrum Team members and stakeholders.

Scaling Product Owner Accountability

1. Multi-team development (scaling) of one Product happens as follows:
• One Product Backlog
• One Product Owner
• One Product Goal at any given time
2. The PO delegates Product Management Activities to the developers.
3. Scrum does not require the members of the Scrum Teams to work full-time on one Product.
4. All Scrum Teams must mutually de ne and comply with the same De nition of Done.
5. The core design and ideas of Scrum do not change. Get good at doing Scrum before you scale it.

Increment
1. Scrum Teams should never release or review incomplete work.
2. When the Sprint is over, the incomplete PBIs go back to the Product Backlog.
3. If the Developers cannot meet their forecast for several Sprints, consider the following:
• The PO should be available to discuss work with the Developers.
• The SM could help the Developers improve their ability to forecast work.
4. If the Developers cannot meet their forecast for several Sprints, we should NOT do the following.
• Blame the Developers.
• Replace low-performing Developers with high-performing Developers.
• Add more Developers to the team.

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Information Radiators
1. Progress measurement is mandatory in Scrum.
2. The PO measures the progress of the Project once per Sprint to ensure value is being delivered.
3. The Burn-down Chart shows the remaining work across time. The trend line is simply a forecast,
an assumption when the project will end if there are no changes in scope and number of
developers.
4. The Burn-up Chart shows the complete work and total work. Changes in the scope are clearly
seen. For your exam, remember that charts or diagrams are not mandatory.

Types Of Contracts
1. The PO revises the budget at least once per Sprint to ensure value is delivered. Generally, that’s
at the end of the Sprint.
2. Some Contract types are supportive of Agility, while others are not.
• Traditional Fixed-Price Contract type has a xed scope which means that Upfront Planning is
required. This is against the Agile Principles and Beliefs.
• Traditional Fixed-Price Contracts limit Agility but it is still possible to execute product
development.
3. A better approach would be to use:
• An Agile Fixed-Price Contract type because it supports Empiricism.
• The Time & Material Contract type is also great for Scrum and Agile.

Software Risk Item by Frequency

1. Misunderstanding of requirements (Requirements)
2. Lack of top management commitment and support (Organizational Environment)
3. Lack of adequate user involvement (User)
4. Failure to gain user commitment (User)
5. Failure to manage end-user expectations (User)
6. Changes to requirements (Requirements)
7. Lack of an effective project management methodology (Planning and Control)

Last Responsible Moment (LRM)

A strategy of not making a premature decision but instead delaying commitment and keeping
important and irreversible decisions open until the cost of not making a decision becomes greater
than the cost of making a decision.

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 Questions and Answers

1. Why would a Product Owner ensure that he is ordering the Product Backlog? (choose the best
option)
A. Ordering the Product Backlog is the best way to achieve goals and missions.
B. In complex environments, it is dif cult to manage the project if the Product Backlog is not
ordered to re ect the change requests that were approved by the Change Control Board.
C. By ordering the Product Backlog he makes sure that the Developers know what items to choose
during the Product Backlog.
D. He updates the Product Backlog according to stakeholders' requests. By ordering the items in
the Product Backlog he ensures that the stakeholders will not go back on their votes.

Explanation: A product owner should be able to determine the priority of product backlog items to
deliver the maximum outcome. The Product Owners are constantly in touch with the stakeholders and
understand the environment in which the product operates. When the needs and market conditions for
the product change, the Product Owner will change the priorities in the Product backlog. He/she may
add new items to the Product Backlog and remove the ones which are now obsolete due to new
stakeholder needs. This means that the Product Owner must order the items in the Product Backlog to
best achieve goals and missions.
The Product Owner is also accountable for effective Product Backlog management, which includes:
1. Developing and explicitly communicating the Product Goal;
2. Creating and clearly communicating Product Backlog items;
3. Ordering Product Backlog items; and,
4. Ensuring that the Product Backlog is transparent, visible, and understood.
Rest all options are incorrect as
Scrum is for complex environments and there is no change requests process or Change Control Board.
As mentioned above one of the key outcomes of Product Backlog Re nement is ordering Product
Backlog items. So the product owner doesn't have to order the product backlog before the Product
Backlog Re nement.
As mentioned above Product Owners are constantly in touch with the stakeholders and understand the
environment in which the product operates. When the needs and market conditions for the product
change, the Product Owner will change the priorities in the Product backlog. He/she may add new
items to the Product Backlog and remove the ones which are now obsolete due to new stakeholder
needs.

2. How can you measure if a product is delivering value to your customer? (choose the best
option)
A. The average cost of a release, as per the Product Owner's calculations.
B. The usage frequency of the product.
C. The Developers' ability to deliver on schedule.
D. None of the answers are valid.
E. All answers are valid.

Explanation: The customer Usage Index is a measurement of usage, by feature, to help infer the
degree to which customers nd the product useful and whether actual usage meets expectations on how
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long users should be taking with a feature. So Customer Usage Index is a reliable measure that can help
determine if a product delivers value.KPIs that drive Value should be outcome focused. The Product
Owner can measure Customer KPIs by
• Customer satisfaction
• Net promoter score (NPS)
• Number of leads generated
• New customers (customer conversion ratio)
• Customer retention ratio
• Customer usage index
• System response time

3. Awareness of which of the following is required for a Product Owner to maximize value?
(Choose the best two options)
A. Customer Feedback
B. Product Goal
C. Team Velocity
D. Unit Test Results
E. Productivity of Scrum Team.

Explanation: The Product Goal describes the future state of the product which can serve as a target for
the Scrum Team to plan against. The Product Goal is in the Product Backlog. The rest of the Product
Backlog emerges to de ne “what” will ful ll the Product Goal. The Product Goal describes the purpose
of the solution. How features serve the purpose affects their value. So Product Goal is directly related
to Value. Customer and end-user feedback are essential for value as well.

Rest all options are incorrect as

Team Velocity is not directly connected to value, and the results of unit tests are a technical matter that
developers need to pay attention to. The productivity of the Scrum Team is not related to value e.g. if
the product goal is not good enough then even if there is high productivity the increment won’t add
value.

4. An organization that is new to Scrum wants to know how the interactions should be between
the Product Owner and the Stakeholders. Which statement best describes the relationship?
(choose the best option)
A. The Product Owner proactively seeks feedback and expectations from stakeholders to
make changes to the Product Backlog.
B. The stakeholders transfer requirements to the Product Owner to convert to User Stories for the
Product Backlog.
C. The Product Owner has full authority over the requirements and should only involve the
stakeholders during the approval process.
D. The Product Owner demos the Increment at Sprint Review for nal user acceptance approval by
the stakeholders.

Explanation: There is a lot of knowledge and experience and there are many interesting perspectives
from others you can learn from. So, estimate the value of Product Backlog Items together with your
stakeholders and Scrum Team. Involve your customers, involve your users, and don't forget your
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 Developers. They may have very interesting viewpoints to learn from, which could lead to you
delivering much more value, with much less effort.

Rest all options are incorrect as

Converting requirements to user stories is not mandatory in Scrum. The scrum team, not just the
Product Owner presents the results of their work to key stakeholders, and progress toward the Product
Goal is discussed. The Product Owner has full authority over the Product Backlog but requirements for
the product backlog come from stakeholders.

5. Which preferred Product Owner stance helps people to align around the product vision and get
people excited to join the case? (choose the best option)
A. The Customer Representative.
B. The Decision Maker.
C. The In uencer.
D. The Collaborator.
E. The Visionary.

Explanation: The In uencer uses effective communication, negotiation, and in uencing skills to get
people passionate and inspired about the cause.
Here is a brief explanation of different types of Product Owner stance
The Customer Representative:
• Focus on understanding customer problems, pains, and opportunities.
• Get into the mindset of the customer, placing yourself in their world, and understanding their
needs.
• Deliver value by connecting product features to customer outcomes.
The Visionary:
• Champion the future state, possibilities, goals, and chances.
• Communicate the product vision, strategy, and Product Goal.
• Understand value and pricing models.
The Experimenter:
• Focus on innovation through experiments, hypotheses, tests, learnings, data, and validation of the
value.
• Understand the Product Owner’s role in a scaled environment.
The Decision Maker:
• Focus on making better decisions.
• Navigate con icting customer feedback.
The Collaborator:
• Seek collaboration with stakeholders and the Scrum Team.
• Work beyond the Scrum Team including contracts, nance, budgeting, and governance in an agile
way.
The In uencer:
• Lead the stakeholders, customers, and Scrum Team, to move in the right direction and to change
their minds, when necessary.
• Learn how to create a stakeholder management strategy.

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