value focused prioritization & decision-making
TRANSCRIPT
@LeanDog @MattBarcomb #AAB16
What we’ll cover today
A better model for R&D
Business value & stories
Benefit Mapping & Costing
@LeanDog @MattBarcomb #AAB16
“‘Essentially, all models are wrong, but some are useful.’ George Box.”
- Amber Rose
@LeanDog @MattBarcomb #AAB16
Planning formass construction
How much will it cost?When will it be done?
@LeanDog @MattBarcomb #AAB16
Planning forresearch & development
Should we start?Should we keep going?
@LeanDog @MattBarcomb #AAB16
Spectrum of knowable stuff
Routine manufacturing
Complex manufacturing
Physical product dev.
Scientific research
Mass construction
Software product dev.
Enterprise ERP impl.
Knowable upfront details
Knowable responses to risks
Knowable links between cause & effect
@LeanDog @MattBarcomb #AAB16
Shift the focus
Primarily focus on understanding value
Evaluate risk and opportunity costs
Learn just enough aboutcosts to choose to start
@LeanDog @MattBarcomb #AAB16
Cost of Delay
How much are you loosing because it’s not already done?
Can over-focused on money
Can lead to mythical dollars
Product: Galaxy
Revenue
Customer Satisfaction
Product Adoption
Product Awareness
Competitiveness Dec. Mktg Costs
Sales Reach
Brand Awareness1
Expires in March
2
3
4Benefit Mapping
Struggling with “benefit”?
Make “Highlander” comparisons
Capture the measurable reasons
Make as quantifiable as possible
Sales Reach 30% Increase
Revenue 10%Decrease Mktg. Costs 15%Product
Adoption 45%1= <1% 5= >15%
1= <$5k 5= >$50k
1= no change 5= very easy
1= <10% of reg. 5= >40% of reg.
Options Scores
New catalogGrades Portal
43
24
12
31
285295
Product: Galaxy
Revenue
Customer Satisfaction
Product Adoption
Product Awareness
Competitiveness Dec. Mktg Costs
Sales Reach
Brand Awareness
WeightedScoring Rubric
Activity: Create a B-Map
You are starting a medicaltechnology company.
Medical Technology
Activity: Create a B-Map
Mind-map desired benefits (value)
Medical Technology
Activity: Create a B-Map
Rank the top 3
Medical Technology
Activity: Create a B-Map
Assign weights
Medical Technology
? % ? % ? %
Activity: Create a B-Map
Come up with 2 research options
Activity: Create a B-Map
Score 2 options (use a 1-5 scale)
Medical Technology
? % ? % ? %
Option 1
Option 2
Activity: Create a B-Map
What did you discuss?How did you decide?
Coherence vs. Artifacts
Cost
“Learn just enough aboutcosts to choose to start.”
Rough cost snap
Use past data
Informed conversation
@LeanDog @MattBarcomb #AAB16
Business Value and User Stories
Stories should be small
Biz value is at “MVP” level
Priority shifts to risk/learning
@MattBarcomb #AAB16 [email protected]
If you’d like the slides……or to discuss something
Please come let me know!or email [email protected]
Questions?