Business Value

Defining value and determining priority can be complex. Value is always defined from someone's perspective, and therefor Product Owners must first determine who's perspective is most important at a given time. We do that through goal setting. Once you have a clear organizational goal, we can rate PBIs with relative value, just like we do with Effort. This section covers the details in how to do this.

Outcomes

• Learners will have the tools they need to identify relative value and assign priority based on Value/Effort

Outline

Sources of Value

Value can come from lots of perspectives. You will use a single slide for the first 3 sections of this topic. The slide is animated, so be sure to practice with the animations.

Sources of value can come from opening new markets, enabling your team or company to do more, reducing risk, saving money, etc. Walk your learners through this concept and ask them where they think value can come from.

Methods of calculating value

Value is always relative. We can use Affinity Sizing and Planning poker to determine value just like we do Effort. Walk your learners through how we can use Affinity Sizing or Planning Poker to determine value.

Value/Effort = Priority

Once you have a number for both value and effort, you can divide your Value number by your Effort number to get a Prioritization number. This is roughly Weighted Shortest Job First (WSJF) and is a helpful tool in prioritizing a backlog because it will prioritize work that creates the highest value per point of effort possible with the data that we have.

Cost of Delay

Cost of Delay is a relatively complex way of visualizing the impact of WSJF. It is a powerful tool to cover if you have time in the class. It can be a bit dense, but the PowerPoint slide is animated in a way to help visualize the core concepts of WSJF. Be sure to practice with the Cost of Delay slides to understand the animations and how you can deliver the learning concepts.

Notes from the past