product owner - agilia conference 2012

New Profession - Product Owner

Agilia Conference 2012, Brno

2

Collaboration

Rapid

Feedback

Common learning

Creating Real Value

How we wants to achieve Agile?

Its about change in the organization!

(c) Aguarra, s.r.o., Lisabonská 2394/4, 190 00 Praha 9, www.aguarra.cz

Flexibility

Empowerment

Quality

Efficiency

Trust

Engagement

of People

EmpowermentAccountabilit

y of the team

3

Collaboration

Rapid

Feedback

Common learning

Creating Real Value

How we wants to achieve Agile?

Its about change in the organization!


Flexibility

Empowerment

Quality

Efficiency

Trust

Its all about Business Business Outcome Matter

Engagement

of People

EmpowermentAccountabilit

y of the team

Aguarra, s.r.o., Lisabonská 2394/4, 190 00 Praha 9, www.aguarra.cz 4

Paradigm change

Budget(Resource

s)

Quality

Deadline

Scope

• Scope (Fixed)

• Budget (Resources)

• Deadline

• Quality

RISK: Transferred to Vendor

(Customer who pays must be happy!)


Paradigm change

Budget(Resource

s)

Quality

Deadline

Scope

Can be project successfull?

Absolutelly!

In Time – In Budget


Paradigm change

Value (Importance

)

Estimation + Planning

Scope

Scope

Quality

DeadlineBudget(Resource

s)

Business RISK: Shared between Vendor and Customer

(User (who use) must be happy !)


Paradigm change

Value (Importance

)

Estimation + Planning

Scope

Scope

Quality

DeadlineBudget(Resource

s)

Business RISK: Shared between Vendor and Customer

(User (who use) must be happy !)

Product Owner


Traditional product management

Marketing

• Vision• Market Analysis

• Segmentation• Marketing Strategy &

Communication• Competition Assessment• Sales Strategy• Pricing• Distribution• ......

Product Management

• Product Design

• Technical Specifications

• Features

• Usability

Various Stakeholders


Who is the Product Owner?

Product Owner

MarketingProduct

Management

Commercial success of the product (service) - ROI

10

Who is Product Owner?

New role

The one who has the money

A man with a Vision – product / serviceTarget segment of customers – for whom is the productBusiness – how to make money on productMarketing – how to market and sell the productFunctionality – minimal marketable feature, technical concept, usability

Entrepreneur / Intrapreneur

Customer Voice? Not Really. Its a customer himself.


11

What Product Owner does?

In General Agile approach

Analyze market/users needsDefines Product Vision and Boundaries (time or DL, costs, resources, technology)

Prepares requirements and prioritize them

Convince development team about product – motivates peoplePO collaborate with production teamProvides feedback to the team – based on many inputsIs available to production teamCoordinates works of supporting members

In Scrum Team

Creates and owns Product BacklogAttends Planning and Review meetingsDefines product iterations and accepts resultsDoing decisions go/no go



When role of Product Owner begins? Project Hidden Phase

InceptionCommissionin

gProduction

Inception:

• Vision of the project - Ideation• Bring stakeholders to agreement around vision• Align with enterprise direction• Identify initial technical strategy, initial requirements• Form initial team• Secure funding• Identify risks

• Product Owner – Definition Business Plan / Stakeholders

Sprint 0

13

Product Owner – One person?

Product Owner is One person – not a committee.It means PO has authority to make final decision.

According to context - may have support team


Architecture Champion

Product Marketin

g

Analyst

Product Owner Team

Product Owner

Team 1

Product Owner

Team 3Team 2 Team n

14

Product Owner – Responsibilities

Role of Product Owner (the one, who has money)

Provides product Vision and Boundaries. Responsible for product profitability (ROI). Responsible for product strategy (product marketing) and tactic (design). Defines product requirements. Defines road-map of product development. Is available to the team – 20% of time – collaborates. Gives team product vision (why), shares it and actualize. Sets priorities. Accept or reject results. Is ready to discuss changes. Manages Stakeholders.

Characteristics of PO Visionary and a action man. Leader and team player. Communicator and negotiator. Is competent and engaged.

Note: Full-time job.

Attributes of Product Owner

Available – daily available to the team or directly engaged to selected activities. Business-savvy – good knowledge of customers, users, market conditions, etc. Knowledge gained by years of practice.Communicative – regularly communicates with stakeholders...Decisive – capable to make decision and be accountable for its decision. Empowered – is high enough in the organization so nobody overrides its decisions.


Mike Cohn – Succeeding with Agile.

15

Product Owner – Required Knowledge

Business Domain Knowledge Years of Experience („Seasoned Veteran“)

Product Knowledge Based on Vision, Based on existing product

Leadership Skills Training and Practice

Communication Skills Training and Practice

Entrepreneurial skills Business School, Training, Environment, Nurturing


Product Owner cannot be outsourced !!!

16

Where is the place in VC for Product Owner?

Source: Michal Vallo, Aguarra


Type 1 Mass

market

Type 2Mass market

Type 3Custom

development (web)

Type 4Custom

development (product)

Type 5R & D

(innovative project)

Type 6Government

project

Customer Type Manufacturer (Internal) Enterprise Enterprise

Enterprise / Manufacturer (internal use)

Enterprise Government office

User Type Limited number (agents)

Too many (consumer)

Too many / Small (B2B)

Application users (limited number) User segment group User group enforced

by legislation

Example Consumers (small cms system/utility) Facebook, Ebay Corporate web site Requirements

tracking software New product Electronic mail box / biometric passport

Project Size Small Large Medium - Small Medium - Large Medium to large Medium to large

Product Vision Manufacturer - Business Idea

Manufacturer - Business Idea Customer Customer Individual Lobbing group

Requirements /Spec. Manufacturer Customer Customer Customer Individual Manufacturer

Business risk owner Manufacturer Customer Customer Customer / Manufacturer Manufacturer Government

Business risk High High Medium Medium - Low Very high Very low

Mitigation

Small steps (features) / Rapid feedback (single

feature, readiness to roll back)

Small steps (features) / Rapid

feedbackSprints

Sprints - communication with

pool of test users

Sprints - communication with

pool of test usersNone

Direct Communication

N/A. Alternative: Rapid feedback channel (web),

group of test users

N/A. Alternative: Rapid feedback channel (web),

group of test usersOne - to - One One - to - Few One - to - Few None

Product Owner Intrapreneur / Visionary leader

Intrapreneur / Visionary leader

Marketing - customer side

Prod.Management – Manufacturer /

Department cust.Intrapreneur N/A or PM

PO Team size None or Little Medium One or small One or small One or small One or None

17

Mass Market – Manufacturer


Product Vision: Manufacturer – business idea

User type: Limited number (agents)

Risk: High

Product Owner:Intrapreneur – visionary leader

PO Type:Internal

18

Mass Market - Enterprise


Product Vision: Manufacturer – business idea

User type: Too many (consumer)

Risk: High

Product Owner:Intrapreneur – visionary leader

PO Type:Internal

19

Custom development - web


Product Vision: Customer

User type: Too many / small (B2B)

Risk: Medium

Product Owner:Marketing – customer side

PO Type:External

20

Custom development - Product


Product Vision: Customer

User type: Application users (limited number)

Risk: Medium

Product Owner:Prod.Management – Manufacturer / Department cust.

PO Type:External / Internal

21

R & D – Innovative product


Product Vision: Individual person

User type: User segment group

Risk: Very high

Product Owner:Intrapreneur

PO Type:Internal

22

Government project


Product Vision: Lobbing group

User type: Enforced by legislation

Risk: Very low

Product Owner:n/a or Project Manager

PO Type:n/a, External is better

IMPLEMENTING AGILITY PROBLEMATIC OR NOT POSSIBLE

23

Where in the arrangements is Product Owner

Product Owner is right where business value is created.


Type 1Mass market

Type 2Mass market

Type 3Custom

development (web)

Type 4Custom

development (product)

Type 5R & D

(innovative project)

Type 6Government

project

Customer type Manufacturer (Internal) Enterprise Enterprise

Enterprise / Manufacturer (internal use)

Enterprise Government office

User type Limited number (agents)

Too many (consumer)

Too many / Small (B2B)

Application users (limited

number)User segment

groupUser group enforced by legislation

ExampleConsumers (small cms

system/utility)Facebook, Ebay Corporate web

siteRequirements

tracking software

New productElectronic mail box / biometric

passport

Product Owner



Marketing - customer side

Product Management - Manufacturer

Intrapreneur N/A or PM

Internal vs External

Internal Internal External External/Internal Internal N/A (external

is better)

24

Typical problems - selection

No Product Owner at all

Unempowered Product Owner PO as an administrator Committee

Incompetent Product Owner Wrong person Lack of skills, visionary and leadership Lack of experience in Agile development Lack of personal interest Lack of communication with the team

No product vision & strategy

Product Owner Proxy


25

Summary

Product Owner

Is (most) important role

Is entrepreneurial business role – principal goal is to create commercially successfull product / service

Requires:1. Experience2. Knowledge (Business Domain)3. Courage

PO has to be trained

PO is one person (who may represent small team)



Recommended reading

Books Agile Product Management with Scrum, Roman Pichler, Addison

Wesley, 2010 Leading Lean Software Development – Results are not the point,

Poppendiecks, Addison Wesley, 2009 Agile Excellence for Product Managers: A Guide to Creating Winning

Products with Agile Development Teams, Greg Kohen, 2010 The Lean Startup: How Today's Entrepreneurs Use Continuous

Innovation to Create Radically Successful Businesses, Eric Ries, 2011

Inspired: How To Create Products Customers Love, Marty Kagan, 2008

ArticlesThe New New Product Development Game – Hirotaka Takeuchi, Ikujiro Nonaka, Harward Business Review, 1986

WebsScrum Alliance (www.scrumalliance.org), Scrum (www.scrum.org), Agilia (www.agilia.cz)

http://www.scrumalliance.org/

http://www.scrum.org/

http://www.agilia.cz/


Thank you

Ing. Michal Vallo, MBA, CSP

Tel. +420 604 226 125E-mail: [email protected]

www.aguarra.cz @aguarrawolf