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BUSINESS VALUE ENGINEERING &
    AGILE SPECIFICATIONS




   ScrumU, December 4, 2009
                       © Joseph Little 2009
                                          1
Definitions

 BV Engineering is the values, principles and
 practices that enable us to deliver more and
 more Business Value [from a given team] as
 we improve.

 BVE: A learning and incremental improvement
 approach to giving customers more of what
 they really want, looking at the whole process,
 end-to-end.



                                    CSM v9.3 © Jeff Sutherland 1993-2008

                       2
Definition

 Agile Specification: “Just enough”
 documentation developed for the
 implementors just in time. Not too much, not
 too little; just enough, in their opinion (and as
 results prove).
   Typically tied to one or a few User Stories.




                                          CSM v9.3 © Jeff Sutherland 1993-2008

                          3
Attributions

 Some people who directly or indirectly
 contributed: Ken Schwaber, Jeff Sutherland,
 Kent Beck, Peter Drucker, Takeuchi & Nonaka,
 Jim York, Chris Mats, Kent McDonald, Womack
 & Jones, Mary & Tom Poppendieck, Taiichi
 Ohno, some friends at “a large financial
 institution in Virginia”, and many others.




                                  CSM v9.3 © Jeff Sutherland 1993-2008

                      4
Joe Little, CST & MBA

Agile Coach & Trainer
20+ years in senior level consulting to well-known firms in New York,
London and Charlotte
Focus on delivery of Business Value
CST, CSP, CSM
Was Senior Manager in Big 6 consulting
Head of Kitty Hawk Consulting, Inc. since 1991
Head of LeanAgileTraining.com
Started trying to do [Agile] before reading The Mythical Man-Month

–   http://agileconsortium.blogspot.com
–   jhlittle@kittyhawkconsulting.com




                                                   © Joseph Little 2009
                                                                      5
A Start

 “You’ve got to be very careful if you don’t
 know where you’re going, because you might
 not get there.”    Yogi Berra



 In other words: In my opinion, BV Engineering
 is the most important thing to work on....




                                   © Joseph Little 2009
                                                      6
Some prerequisites
 You agree that...
   Our business is JIT knowledge creation
   Our business is JIT knowledge delivery
   Optimizing the Pareto Rule is key to success
   Customers don’t really know what they want
   “I know it when I see it.”
   What they really to act on is a complex set of
   trade-offs, including benefit, cost and time
   Tacit knowledge is more important than Explicit
   knowledge

                                         © Joseph Little 2009
                                                            7
What the Product Owner does
 BV Engineering

   Customers      The Business
    External      Customer facing
                      people


       &
                                           The Team


     Internal
                  Internal groups
                  (Firm oriented)

                                    Content © Joseph Little 2008
First problem

 Customers want infinite features since
 effective cost to Dept is zero.
   This is not really how things “are”, but how most
   university departments are treated.
   (Universities really do not have infinite resources.)


 So, what to do?




                                          © Joseph Little 2009
                                                             9
“Ideal” solution
 We do cost benefit analysis in $, and any effort
 that gives less than 3X return does not get
 done. And efforts are ranked by their ratio.

 And any story that gets less than about 3X
 return does not get done.

 And, the senior manager gets real $ benefits
 and real $ costs, so she has an incentive to
 deploy early.

 BUT....
                                     © Joseph Little 2009
                                                       10
Some solutions

 Make each Mgr estimate the benefits and have
 “the delphic 5” review the estimate vs other
 projects.
 Fix the time period. (“You can get any stories
 you want in 5 Sprints.”)
 The delphic 5 might do two rounds of guessing
 at the $ benefits of a project. And then avg.
 “Assume” that a project will deliver $ benefits
 that are 3X the costs. Give these projects to
 the delphic 5 for a “sniff test”. Probably for a
 few, they will say: “You must be kidding!”
                                     © Joseph Little 2009
                                                       11
Is it better this way?

   Customers   The Business
    External   Customer facing
                   people


      &
                                        The Team


    Internal
               Internal groups
               (Firm oriented)

                                 Content © Joseph Little 2008
Hallmarks of real BV Engineering!

1. The process is visible and articulated &
   improved
2. Failures in BV communication are identified
   and corrected frequently, quickly
3. There is a theory, and a concerted attempt to
   prove out the theory
4. There is appropriate dynamism and change
5. Business & Technology are partners
6. Success is forecast and also measured after
   the fact
7. Human judgment is involved (it’s not just the
   numbers)                             © Joseph Little 2009
                                                        13
Agile Specifications

 So, one of the key things about BV Engineering
 is:
   How do we get the “requirements” into the Team,
   so they can do them the best?
 Agile Specifications are a partial answer




                                      © Joseph Little 2009
                                                        14
More assumptions
 We’re still doing lots of other stuff
 We’re still using User Stories and Acceptance
 Criteria
 The PO or another business person is having daily
 conversations with the Implementors (pigs).
 We developed “all” the stories as quickly as
 possible.
 Arch & Design were initially done using the User
 Stories (+ conversations, etc); and is continually
 being improved.
 We all actually believe in JIT knowledge creation
 Etc........
                                       © Joseph Little 2009
                                                         15
Definition

 Agile Specification: “Just enough”
 documentation developed for the
 implementors just in time. Not too much, not
 too little; just enough, in their opinion (and as
 results prove).
   Typically tied to one or a few User Stories.




                                          CSM v9.3 © Jeff Sutherland 1993-2008

                         16
How do they work?
 One or two Sprints before a story goes into a
 Sprint, the PO arranges for the Agile Spec to be
 built.
   Maybe by the PO, the BA, a stakeholder
 The Team and the PO agree what will be in the
 Agile Spec.
    Maybe: Wire Frames, drawings, simple use case, data
    elements, key edit criteria, diagrams, pictures, more
    robust test examples, etc, etc.
 The Agile Spec enables conversation, it does not
 replace conversation.
 Based on experiences, the required content of the
 Agile Spec is continually being revised.
                                            © Joseph Little 2009
                                                              17
How again?

 How does the PO, BA, Stakeholder get the
 content for the Agile Spec?
    “Agile Spec” does not define that.
    There are many, many techniques.
   One best practice is to watch the real users
   carefully; interviewing user is by comparison fairly
   low value.
 Does the Pareto Rule apply to the content of
 the Agile Spec?
    YES!!!
                                          © Joseph Little 2009
                                                            18
How? (3)
 When exactly is an A.S. built?
    Not defined. Probably 1 or 2 Sprints before.
 Do the Implementors review the A.S. before the
 SPM? Yes!!
 Can the A.S. be tied to a specific User Story? Yes.
 What is the purpose? Probably many. One: To
 enable the implementors to get the PBI done as
 fast as possible (assuming also high quality).
 How do we know the content of the A.S. is right?
 The implementors keep giving the PO feedback.
 Continually improved.

                                       © Joseph Little 2009
                                                         19
Why?

 Why don’t you define the A.S. in more detail?
   Because what Team A needs is different than what
   Team B needs.
   Because: The following might be different: The
   product, the customers, the project, the
   environment, the PO (BA, stakeholder), the Team
   (memory, basic understandings, etc), etc, etc.
   We don’t build documentation around well-known
   knowledge
   We might need to document some knowledge that
   is not well known.
                                      © Joseph Little 2009
                                                        20
Documentation is ONLY there to support
communication and understanding.




                                 © Joseph Little 2009
                                                   21
The End




          For now....




                        © Joseph Little 2009
                                          22
Retrospective

 What do you remember?

 What will you act on tomorrow?

 What thing(s) will you do to improve your BV
 Engineering?




                                   © Joseph Little 2009
                                                     23

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Bv Eng & Agile Specs For Scrum U.Key

  • 1. BUSINESS VALUE ENGINEERING & AGILE SPECIFICATIONS ScrumU, December 4, 2009 © Joseph Little 2009 1
  • 2. Definitions BV Engineering is the values, principles and practices that enable us to deliver more and more Business Value [from a given team] as we improve. BVE: A learning and incremental improvement approach to giving customers more of what they really want, looking at the whole process, end-to-end. CSM v9.3 © Jeff Sutherland 1993-2008 2
  • 3. Definition Agile Specification: “Just enough” documentation developed for the implementors just in time. Not too much, not too little; just enough, in their opinion (and as results prove). Typically tied to one or a few User Stories. CSM v9.3 © Jeff Sutherland 1993-2008 3
  • 4. Attributions Some people who directly or indirectly contributed: Ken Schwaber, Jeff Sutherland, Kent Beck, Peter Drucker, Takeuchi & Nonaka, Jim York, Chris Mats, Kent McDonald, Womack & Jones, Mary & Tom Poppendieck, Taiichi Ohno, some friends at “a large financial institution in Virginia”, and many others. CSM v9.3 © Jeff Sutherland 1993-2008 4
  • 5. Joe Little, CST & MBA Agile Coach & Trainer 20+ years in senior level consulting to well-known firms in New York, London and Charlotte Focus on delivery of Business Value CST, CSP, CSM Was Senior Manager in Big 6 consulting Head of Kitty Hawk Consulting, Inc. since 1991 Head of LeanAgileTraining.com Started trying to do [Agile] before reading The Mythical Man-Month – http://agileconsortium.blogspot.com – jhlittle@kittyhawkconsulting.com © Joseph Little 2009 5
  • 6. A Start “You’ve got to be very careful if you don’t know where you’re going, because you might not get there.” Yogi Berra In other words: In my opinion, BV Engineering is the most important thing to work on.... © Joseph Little 2009 6
  • 7. Some prerequisites You agree that... Our business is JIT knowledge creation Our business is JIT knowledge delivery Optimizing the Pareto Rule is key to success Customers don’t really know what they want “I know it when I see it.” What they really to act on is a complex set of trade-offs, including benefit, cost and time Tacit knowledge is more important than Explicit knowledge © Joseph Little 2009 7
  • 8. What the Product Owner does BV Engineering Customers The Business External Customer facing people & The Team Internal Internal groups (Firm oriented) Content © Joseph Little 2008
  • 9. First problem Customers want infinite features since effective cost to Dept is zero. This is not really how things “are”, but how most university departments are treated. (Universities really do not have infinite resources.) So, what to do? © Joseph Little 2009 9
  • 10. “Ideal” solution We do cost benefit analysis in $, and any effort that gives less than 3X return does not get done. And efforts are ranked by their ratio. And any story that gets less than about 3X return does not get done. And, the senior manager gets real $ benefits and real $ costs, so she has an incentive to deploy early. BUT.... © Joseph Little 2009 10
  • 11. Some solutions Make each Mgr estimate the benefits and have “the delphic 5” review the estimate vs other projects. Fix the time period. (“You can get any stories you want in 5 Sprints.”) The delphic 5 might do two rounds of guessing at the $ benefits of a project. And then avg. “Assume” that a project will deliver $ benefits that are 3X the costs. Give these projects to the delphic 5 for a “sniff test”. Probably for a few, they will say: “You must be kidding!” © Joseph Little 2009 11
  • 12. Is it better this way? Customers The Business External Customer facing people & The Team Internal Internal groups (Firm oriented) Content © Joseph Little 2008
  • 13. Hallmarks of real BV Engineering! 1. The process is visible and articulated & improved 2. Failures in BV communication are identified and corrected frequently, quickly 3. There is a theory, and a concerted attempt to prove out the theory 4. There is appropriate dynamism and change 5. Business & Technology are partners 6. Success is forecast and also measured after the fact 7. Human judgment is involved (it’s not just the numbers) © Joseph Little 2009 13
  • 14. Agile Specifications So, one of the key things about BV Engineering is: How do we get the “requirements” into the Team, so they can do them the best? Agile Specifications are a partial answer © Joseph Little 2009 14
  • 15. More assumptions We’re still doing lots of other stuff We’re still using User Stories and Acceptance Criteria The PO or another business person is having daily conversations with the Implementors (pigs). We developed “all” the stories as quickly as possible. Arch & Design were initially done using the User Stories (+ conversations, etc); and is continually being improved. We all actually believe in JIT knowledge creation Etc........ © Joseph Little 2009 15
  • 16. Definition Agile Specification: “Just enough” documentation developed for the implementors just in time. Not too much, not too little; just enough, in their opinion (and as results prove). Typically tied to one or a few User Stories. CSM v9.3 © Jeff Sutherland 1993-2008 16
  • 17. How do they work? One or two Sprints before a story goes into a Sprint, the PO arranges for the Agile Spec to be built. Maybe by the PO, the BA, a stakeholder The Team and the PO agree what will be in the Agile Spec. Maybe: Wire Frames, drawings, simple use case, data elements, key edit criteria, diagrams, pictures, more robust test examples, etc, etc. The Agile Spec enables conversation, it does not replace conversation. Based on experiences, the required content of the Agile Spec is continually being revised. © Joseph Little 2009 17
  • 18. How again? How does the PO, BA, Stakeholder get the content for the Agile Spec? “Agile Spec” does not define that. There are many, many techniques. One best practice is to watch the real users carefully; interviewing user is by comparison fairly low value. Does the Pareto Rule apply to the content of the Agile Spec? YES!!! © Joseph Little 2009 18
  • 19. How? (3) When exactly is an A.S. built? Not defined. Probably 1 or 2 Sprints before. Do the Implementors review the A.S. before the SPM? Yes!! Can the A.S. be tied to a specific User Story? Yes. What is the purpose? Probably many. One: To enable the implementors to get the PBI done as fast as possible (assuming also high quality). How do we know the content of the A.S. is right? The implementors keep giving the PO feedback. Continually improved. © Joseph Little 2009 19
  • 20. Why? Why don’t you define the A.S. in more detail? Because what Team A needs is different than what Team B needs. Because: The following might be different: The product, the customers, the project, the environment, the PO (BA, stakeholder), the Team (memory, basic understandings, etc), etc, etc. We don’t build documentation around well-known knowledge We might need to document some knowledge that is not well known. © Joseph Little 2009 20
  • 21. Documentation is ONLY there to support communication and understanding. © Joseph Little 2009 21
  • 22. The End For now.... © Joseph Little 2009 22
  • 23. Retrospective What do you remember? What will you act on tomorrow? What thing(s) will you do to improve your BV Engineering? © Joseph Little 2009 23