Value-Driven Delivery (20%) Flashcards
maximizing business value
the reason projects are undertaken is to generate business value
value driven delivery must be the focus of our projects
next to the argumentation of knowledge work this is the reason why to do agile
1) keep visibility of value creation high
2) keep adaptability high during the project
3) deliver early
4) keep risk low
why deliver value early
1) because projects can be cancelled, short lifecycle of projects
2) satisfy customers early
Assessing Value
Return on investment
Net Present Value
Internal Rate of Return
ROI= ratio of the benefits received from an investment to the money invested in it, expressed as a percentage
higher roi = higher return
But does not consider inflation or the cost of borrowing money
NPV=Net Present Value
The present value of a revenue stream (income minus costs) over a series of time periods
higher value=higher NPV
problem: inflation / interests rates are guesses
IRR=Internal Rate of Return
discount rate=interest rate you need to earn on a given amount of money today to end up with a given amount of money in the future
IRR= The discount rate at which the project inflows (revenues) and project outflows (costs) are equal
project duration and payback used to calculate needed rate (no guess of inflation rate/ interests)
ROI vs NPV
NPV helpful for comparing projects with different timeframes. Do inflation and interest over the longer period cancel out higher inflation and interest rates.
Calculate NPV of the 2 projects
Monitor delivery of value
EVM= Earned Value management
- advantage: it shows scheduling (gantt) and money (s grave) for monitoring
- Pros to use EVM in agile projects
Evm looks forward (leading metric) and tries to predict completion dates and final costs
It is a visual tool. - Cons to use EVM in agile projects
EVM compared actual project performance with planned performance > quality of the baseline depends of the planning
And EVM does not really show whether it truly delivers value (does the customer like what is beeing build)?
Agile Earned Value Tool
Scope
Cost
Schedule
Performance with functional areas
Managing risk
risk = anti value for delivering value
Agile teams plan to avoid risks.
Involve stakeholders in risk identification, esp development team
Iterative practices help us to react in order to avoid risks
tools:
adjusting backlog
risk burn down chart
Prioritizing Value
Why? > Welcome changing requirements even late in projects.
Customer-Valued Priorization
PO orders backlog
customer has a new change request
Customer compares his request to top backlog entries
Simple schemes
Prio 1,2,3…
MoSCoW Must have should have could have would like to have but not this time
Monopoly money
100 point method
For voting
Kano Analysis ((not)satisfied, (not) fulfilled)
- Delighters
These features delivers unexpected positive thinks
- Satisfiers
bring expected value to customer
- Dissatisfaction
features that will make the user dislike the product
- Indifferent
no impact on customer feelings.
Requirements Prioritization Model
more mathematical method
scale 1-9
> weighted formula
Relative Prioritazation
simply ask customer to bring features in a priority
when a change is necessary: ask customer
where to put it in the list
single prioritized work list
Relative PriorizTion / Ranking
simple list 1-x of features with priorisation
sinplyfing work by only having one bucket list
incorporating change in the list:
adding a change will force something else out
delivering incrementally
Minimal Valuable Product (MVP)
early delivery
opportunity of realisiung the benefits of the plain vanilla version
Agile Tooling
1) data accuracy perception increases
sophisticated models suggest exact numbers but it’s just a rough guess after all
> disguise volatile nature of projects
2) barriers for stakeholder interactions are created
only team lead update the data
more sophisticated modells are not understood by everyone
low-tech high touch tools are preferred
all team members involved
we do not imply data accuracy
> promote communication and collaboration
tangible objects
task/ kanban board
task board = kanban board
whiteboard with columns and different stages of work
one of the most fundamental agile tools
WIP
work that has been started but is not finished yet
- does not produce value until finished - masks efficiency issues
- represents risk in form of potential rework
WIP limits
aim: optimize throughput not to optimize resource utilization
Cumulative Flow Diagrams
CFDs
- used to track and forecast value
- planned features, wip, and done features over the project time
bottlenecks and
theory of constraints
(TOC)
- focus on bottlenecks in the organisation
- which variable makes a huge difference in the system
- p
Agile Constraints abs Contracts
Agile Constraints and Contracts
