Ranking and prioritization as regular activity and prerequisite to scaling agile

Erik SchumannErik.schumann@sellegi.se@Schumann_Erik

The economic system consists of interconnected variables

”We are like the drunk under the lamppost looking for his keys where the light is best, instead of where he dropped them.”

Don Reinertsen, The Principles of Product Development Flow

Cycle Time Product Cost

Product Value

Development

Expense

Risk

We focus on cycle time! Why?

”Developers measure development cycle time and seek to make it shorter. However, when you ask them how much life-cycle profit will decrease due to a week of delay they don’t know”

Don Reinertsen, The Principles of Product Development Flow

Cycle Time Product Cost

Product Value

Development

Expense

Risk

While you may ignore economics, it won’t ignore you.

”If you only quantify one thing, quantify the cost of delay”

Don Reinertsen, The Principles of Product Development Flow

Cycle Time Product Cost

Product Value

Development

Expense

Risk

EstimatedVariable

Parameters

RestrictiveFixed

ParametersSet of requirements

Working featuresCost

Delivery timeCost

Delivery time

Agiledevelopment

Predictivedevelopment

Agile development turns the world around

Prioritization:Fixed Cost of Delay and variable duration

Prioritization:Fastest delivery of business value with WSJF

Focus on remaining duration!Do not consider money already spent.

Cost of Delay / WSJF according to SAFe

User|Business Value + Time Criticality + RR|OE Value WSJF =

Job Size

SAFe Suggestion:Use the relative fibonacci scale for each variable

Simplified WSJF:Relative prioritization with stacked ranking

High

Low

Summary

• If you only quantify one thing, quantify the cost of delay

• Prioritization is based on estimates and guesses

• Prioritization is a dynamic activity. Do it regularly

• Prioritization can be simplified using relative, stacked ranking