Value-driven Delivery Flashcards
Definition of Value-driven Delivery
- > Project exist to create business value
- > PMs goal is to increase business value
- > goal is to deliver value early in the project
7 Areas of Waste
1->Partially done work 2->extra processes 3->extra features 4->Task switching 5->waiting 6->motion 7->defects
Value (ROI)
Value of the project - (minus) the Investment
but ROI does not say a lot about business value
Definition of Present Value (PV)
Current Value of a future sum of money given a specified rate of return
Future Value (FV)
Sum of money in the future, given a specified rate of growth
Net Present Value (NPV)
Current Value of a revenue stream over a series of time periods (High NPV is good)
Value Management in Projects (Definitions)
a) CPI
b) ETC
c) AC
d) BAC
e) EAC
f) TCPI
a) Cost Performance Index (earned value / actual costs)
b) Estimate to complete
c) Actual Costs
d) Budget at completion
e) Estimate at completion
f) To-complete Performance Index (BAC-EV)/(BAC-AC)
5 EVM Rules
a) EV is first
b) Variance means subtract (-)
c) Index means division (/)
d) Less than one is bad in an index (except for the TCPI)
e) Negative is bad in a variance
Other important KPI’s in Agile
a) Rate of progress
b) Remaining work
c) Likely completion date
d) Likely costs remaining
e) throughput / Burn rate / velocity
Risk in Agile
- > Risk is an anti value
- > it is a threat to the goal
- > Must be managed iteratively
- > Must be recorded in a risk log
- > Features with high risk to be addressed early
Regulatory Compliance in Agile
Regulations are linked to requirements and have to be address otherwise they are a risk for the project
5 Customer Value Prioritization concepts
a) Team works on high value items first
b) Product owner is responsible for defining the business value
c) Changes in the backlog require reprioritization for value
d) The customer defines what success looks like
e) Team discuss with the customer the priority of the remaining work
Product Backlog Priority
Highest Value items first
MoSCoW Prioritization
- > Must have
- > Should have
- > Could have
- > Would like, but not this time
Keno Analysis
- > Must-be quality = expected quality
- > One-dimensional quality = promised quality (ok)
- > Attractive quality = Nice to have quality
- > indifferent quality = not relevant for me quality
- > reverse quality = some love / some hate feature quality
Dot Voting / Multi Voting
- > Color Stickers represent Opinion, Stakeholders, whatever to achieve some segmenting
- > Risk, New features can’t be considered
Monopoly Money
-> Stakeholder Receive Fake-Money equal an amount of the project budget to buy Features
100-Point Method
- > Each stakeholder gehts 100 Points
- > All points have to be distributed among all the requirements
- > Private vs. Public voting
Requirements Prioritization Model
- > Scale from 1 - 9
- > Evaluating Benefit, penalty, cost and risk of every feature
Relative Prio Ranking
1-> Priority
2-> Simplest from most to least important
3-> Determination to meet budget / schedule
4-> Changes change priority
5-> Changes bump priorities from the list
Value in Increments
-> Regular deployment, eg. dev stage prod and test in every stage, once things are in prod things get expensive to change
Cost of Change
- > Change is least expensive in the beginning of the Project
- > Change is expected but can be expensive and timely
MVP
-> Complete enough to be useful
Low-Tech / High-touch Tools
- > Don’t over engineer things
- > Use what is there and serves the purpose instead of something highly sophisticated
