Organizational structure in the Digital and Agile age

Allan Kelly from Allan Kelly Associates

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Someone ask the other day: how should a organisation be designed?

There are two potential answers, which actually aren’t as contradictory as they look at first site.

The first is very simple: Don’t.

That is, don’t design your organization, don’t set out an organizational chart, don’t set out a plan and aim to restructure your organization to that plan. Rather create the conditions to let a structure emerge.

I suppose its the difference between “design” meaning “create a plan for the way you want things to be” and “design” meaning “the way things are arranged.” To differentiate them the first might be called “intentional design” and the latter “emergent design.”

That does not necessarily imply all emergent structures are good. As we see in code sometimes emergent designs are not always the best and over time they need refactoring. Which implies at some point there needs to be intentional design.

Put it like this: I’d rather your organization pulls the design rather than you push a design on the organization.

Organizational structure is itself a function of business strategy. And both need to be part emergent and part intentional. Although you might have noticed I tend towards emergent while most of the world tends towards intentional!

Thus it helps to have a reference model of how you think the organization should be, maybe something to steer the organization towards.

So the second answer to the question would be longer:

  • Create standing delivery teams which are embedded in the business line itself. This is sometimes call stream teams, or stream based development, or “teams aligned to the value stream”, or several other names I can’t think of just now.
  • Each business line is itself a stream of work and digital delivery teams support that work.
  • Teams contain all the skills and authority to do the work that is required for that business stream.
  • The team is part of the stream so the business/technical divide should dissolve. Something I call BusTech.
  • Teams are value seeking and value creating: the team seeks opportunities to create value for the business and delivers on the most valuable ones.
  • Devolve authority to the teams whenever you can. Teams are mini-businesses. (Notice I deliberately don’t use the word empowerment.)
  • Teams grow when the business is successful and more digital capability is needed. And teams shrink when money is tight or less capability is needed.
  • Teams may split (Amoeba style) from time to time. New teams may be in the same business line (addressing another question) or part of another, possibly new, business line.
  • Active – or Agile – Portfolio Management sits on top to monitor progress, provide extra resources, remove resources, etc. There may even be multiple portfolio processes, one at the business line level and perhaps one above multiple business lines.
  • Minimally Viable Teams are started to explore new initiatives, sometimes these go on to be full standing teams but they may also be dissolved if the idea doesn’t validate.
  • Seek to minimise common services between teams because these create bottlenecks, conflicts and delays. Each team should stand alone. This may mean some duplication, and therefore some extra costs, but accept that. Once you have your model working you can fine tune such things later.
  • Don’t worry about planning and synchronisation between teams to much, worry more about getting the teams to release more often and deal with synchronisation issues when they become a problem.

They are the main points at any rate. If you’d like to know more Continuous Digital contains a longer discussion of the topic. (Continuous Digital actually builds on Xanpan in this regard, and the (never finished) Xanpan Appendix discusses the same idea.)

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#NoProject #NoEstimates workshop

Allan Kelly from Allan Kelly Associates

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In August I’m running a 1-day workshop in Zurich with Vasco Duarte on the bleeding edge of Agile: #NoProjects and #NoEstimates for Digital First companies.

This is a pre-conference event for the ALE 2018 conference which is happening the same week in Zurich. Everyone is welcome, you don’t need to attend the conference.

If you book in the next two weeks you get it for cheap, after July 20 the price goes up – although its still only a few hundred euros.

Book now, save money and secure your place – places are limited!

For those ho can’t get to Zurich in August I’ve got a Continuous Digital workshop of my own and a half-day management briefing. Right now you can book either of these for private in-house delivery. I’m looking at offering these as public courses here in London, if you are interested get in touch and help me fix a date.

(I have a love hate relationship with #NoProjects, I’d love to retire the name but it resonates with so many people. So I tend to use #NoProjects when I’m discussing my critique of the project model and Continuous Digital when I’m setting out my preferred alternative.)

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Best practices considered harmfull

Allan Kelly from Allan Kelly Associates

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I’ve long worried about “Best Practices”. Sure I usually play along at the time but lurking in the back of my mind, waiting for a suitable opportunity are two questions:

  • Who decided this was best practice?
  • Who says this practice can’t be bettered?

I was once told by someone from the oil industry that it was common for contracts to specify “best practice” should be used. But seldom was the actual practice specified. Instead each party to the contract would interpret best practice as they wished, until something went wrong. At that point, after an accident, after money was lost they would go to court and a judge would decide what was best practice.

Sure practice X might be the best know way of doing things at the moment but how much better could it be? By declaring something “best practice” you can be self limiting and potentially preventing innovation.

Now a piece in MIT Sloan Management Review (Why Best Practices Often Fall Short, Jérôme Barthélemy, February 2018) adds to the debate and highlights a few more problems.

Just for openers, sometimes people mistakenly identify the practice creating the benefits. Apparently some people looked at Pixar animation and decided that having rest rooms (toilets to us English speakers) in the centre of an office floor enhances creativity. They might do, but there is so much else happening at Pixar that moving all the toilets in your organization will probably make no difference at all.

But it is worse than that.

Adopting best practice from elsewhere does not mean it will be best practice in your environment but adopting that “best practice” will be disruptive. Think of all the money you will need to spend relocating the toilets, all the people who will be upset by a desk move they don’t want, all the lost productivity while the work is going on.

The author suggests that in some cases that disruption costs are so high the “best practice” will never cover the costs of the change. Organizations are better shunning the best practice and carrying on as they are. (ERP anyone?)

It gets worse.

There is risk in those best practices. Risk that they will cost more, risk that they won’t be implemented correctly and risk that they will backfire. What was best practice at one organization might not be best practice in yours. (Which might imply you need even more change, even more disruption at even more cost.)

In fact, some best practices – like stock options for executives – can go horrendously wrong and induce behaviours you most definitely don’t want.

So what is a poor company to do?

Well, the author suggests something that does work: copying good practices. Not best but “just OK”. That works. Copy the mundane stuff, the proven stuff. The costs and risks of a big change are avoided. (This sounds a bit like In Search of Mediocracy.)

In my world that means you want to be getting better at doing Agile instead of trying to leapfrog Agile and move to DevOps in one bound.

The author also suggests that where your competitive advantage is concerned keep your cards close to your chest. Do thinks yourself. Work out what your best practice is, work out how you can improve yourself.

I’ve long argued that I want teams to learn and learn for themselves rather than have change done to them. But I also want teams to steal. When they see other teams – at home or elsewhere – doing good things they should steal practices. The important thing from my point of view is for the teams to decide for themselves.

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Free books and other news

Allan Kelly from Allan Kelly Associates

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Many of you are reading this because you signed-up for a free copy of my Xanpan book.

Thank you so much! – I hope you are enjoying my thoughts, reflections and tips.

Now, can I ask a favour, please? – a few minutes of your time.

If you have a copy of Xanpan would you mind writing me an Amazon review? (thats .com, Amazon UK has a separate list of reviews – yes, it is a pain).

Please, please, please 🙂

Amazon reviews make a big difference to sales and I’d be most grateful. (Even more so for 5-star reviews!)

And I will happily give a free review copy of “Little Book of Requirements and User Stories” to anyone who would like to review that book too – mail me, allan@allankelly.net. (And if you already have a copy of Little Book please suggest some other way I can thank you for your review.)

I’m also working on getting Continuous Digital and Project Myopia onto Amazon. Both will get new professional covers and a proper copy edit

Finally, as some of you know, I’ve started writing a companion to Little Book: Product Ownership. Again I’m using the LeadPub system so you can buy the book now and get free updates as I add to the book and edit it. And I am most grateful to those of you who have already bought Product Ownership.

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Dialogue sheets update – translation & Amazon

Allan Kelly from Allan Kelly Associates

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It is six years now since I introduced Retrospective Dialogue sheets to the world and I continue to get great feedback about the sheets. Now I’m running a little MVP with the sheets via Amazon, but first…

In the last few months Alan Baldo has translated the planning sheet to Portuguese and Sun Yuan-Yuan, with help from David Tanzer, has translated two of the retrospective sheets to German.

Thank you very much Alan, Sun and David!

I also updated the Sprint Retrospective sheet (above): version 5 has removed all references to software development. While can still be used by software teams it is more general. Actually, the sheet was largely domain neutral already which explains why it has been used in a Swedish kindergarten for retrospectives.

In the meantime I’ve been busy with an MVP experiment of my own – which has taken a surprising amount of work to get up and running – and you can help with.

I have made printed versions of the latest Sprint Retrospective sheet available on Amazon to buy. The sheets are still available as a free download to print yourself but I want to see if I can reach a broader audience by offering the sheets on Amazon. Plus I know some teams have trouble getting the sheets printed.

Right now this is market test, the printed sheets are only available in the UK I only have a few sheets in stock so this is a “Buy now while stocks last” offer.

If you are outside the UK (sorry) and want a printed sheet, or find stocks have run out, or want a different printed sheets please contact me and I’ll do my best.

Assuming this is a success then I’ll get more sheets printed, arrange to sell outside the UK, add more of the sheets to Amazon and make a renewed effort on translations. Pheww!

So now I need to ask for your help.

If you have used the sheets and find them good please write a review on Amazon – there are a few but there cannot be too many.

Conversely, if you have never tried a Dialogue Sheet retrospective please do so and let me know how it goes: I am always seeking feedback. Download and print for yourself or go over to Amazon and buy today – you could be the first buyer!

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Estimation, planning, teams and money, some data

Allan Kelly from Allan Kelly Associates

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When I deliver Agile training for teams I run an exercise called “The Extended XP Game”. It is based on the old “XP Game” but over the years I’ve enhanced it and added to it. We have a lot of fun, people are laughing and they still talk about it years later. The game illustrates a lot of agile concepts: iteration, business value, velocity, learning by doing, specification by example, quality is free, risk, the role of probability and some more.

When I run the exercise I divide the trainees into several teams, usually three or four people to a team. I show them I have some tasks written on cards which they will do in a two minute iteration. They do two minutes or work, review, retrospect then do another two minutes of work – and possibly repeat a third time.

The first thing is for teams to Get Ready: I hand out the tasks and ask them to estimate, in seconds how long it will take to do each task: fold a paper airplane that will fly, inflate a balloon, deflate a balloon, roll a single six on a dice, roll a double six on two dice, find a two in a pack of cards and find all the twos in the pack of cards. Strictly speaking, this estimate is a prospective estimate, “how long will it take to do this in future?”

Once they have estimated how long each task will take someone is appointed product owner and they have to plan the tasks to be done (with the team).

What I do not tell the teams is that I’m timing them at this stage. I let the teams take as long as they like to get ready: estimate and plan. But I time how long the estimation takes and how long the following planning takes.

Once all the teams are “ready” I ask the teams: “how long did that take?”

At this point I am asking for a retrospective estimate: how long did it take. The teams have perfect estimation conditions: they have just done it, no time has elapsed and no events have intervened.

Typically they answer are 5 or 6 minutes, maybe less, maybe more. Occasionally someone gets the right number and they are then frequently dismissed by their colleagues.

Although I’ve been running this exercise for nearly 10 years, and have been timing teams for about half that time I’ve only been recording the data the last couple of years. Still it comes from over 65 teams and is consistent.

The total time to get ready to do 2 minutes of work is close to 13 minutes – the fastest team took just 5.75 minutes but the slowest took a whopping 21.25.

The average time spent estimating the tasks is 7 minutes. The fastest team took 2.75 minutes and the slowest 14 minutes.

The average time planning once all tasks are estimated is just short of 6 minutes. One team took a further 13.5 minutes to plan after estimates while another took just 16 seconds. While I assume they had pretty much planned while estimating it is also interesting to note that that team contained several people who had done the exercise a few years before.

(For statistics nuts the mean and median are pretty close together and I don’t think the mode makes much sense in this scenario.)

So what conclusions can we draw from this data?

1) Teams take longer to estimate than do

Everyone taking part in the exercise has been told – several times – that they are preparing to do a 2 minute iteration. Yet on average teams spend 12.75 minutes preparing – estimating and planning – to do 2 minutes of work!

Or to put it another way: teams typically spend six times longer to plan work than to do work.

The slowest team ever took over 10 times longer to plan than to do.

In the years I’ve been running this exercise no team has ever done a complete dry run. They sometimes do little exercises and time themselves but even teams which do this spend a lot of time planning.

This has parallels in real life too: many participants tell me their organization spend a long time debating what should be done, planning and only belatedly executing. One company I met had a project that had been in planning for five years.

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2) Larger teams take longer to estimate than small teams

My second graph shows there is a clear correlation between team size and the time it takes to estimate and plan. I think this is no surprise, one would expect this. In fact, this is another piece of evidence supporting Diseconomies of Scale: the bigger the team the longer it will take to get ready.

This is one reason why some people prefer to have an “expert” make the estimate – it saves the time of other people. However this itself is a problem for several reasons.

Anyone who has read my notes on estimation research (and the later more notes on estimation research) may remember that research shows that those with expert knowledge or in a position of authority underestimate by more than those who do the work. So having an expert estimate isn’t a cure.

But, those same notes include research that shows that people are better at estimating time for other people than they are at estimating time for themselves, so maybe this isn’t all bad.

However, this approach just isn’t fair. Especially when someone is expected to work within an estimate. One might also argue that it is not en effective use of time because the first person – the estimator – has to understand the task in sufficient detail to estimate it but rather than reuse this learning the task is then given to someone else who has to learn it all over again.

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3) Post estimation planning is pretty constant

This graph shows the planning delta, that is: after the estimates are finished how long does it take teams to plan the work?

It turns out that the amount time it takes to estimate the task has little bearing on how long the subsequent planning takes. So whether you estimate fast or slow on average it will take six more minutes to plan the work.

Perhaps this isn’t that surprising.

(If I’ve told you about this data in person I might have said something different here. In preparing the data for this blog I found an error in my Excel graphs which I can only attribute to a bug in Excel’s scatter chart algorithm.)

4) Vierordt’s Law holds

People underestimate longer periods of time (typically anything over 10 minutes), and overestimate short period of time (typically things less than two minutes).

Not only do trainees consistently underestimate how long it has taken them to get ready – which is over 10 minutes – but teams which record how long it takes to actually do each task find that their estimates are much higher than the actual time it takes. Even when teams don’t time themselves observation shows that they do the work far faster than they thought they would.

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5) Less planning makes more money

One of my extensions to the original game is to introduce money: teams have to deliver value, measured in money. This graph shows teams which spend less time planning go on to make more money.

I can’t be as sure about this last finding as the earlier ones because I’ve not been recording this data for so long. To complicate matters a lot happens between the initial planning and the final money making, I introduce some money and teams get to plan for subsequent iterations.

Still, there are lessons here.

The first lesson is simply this: more planning does not lead to more money.

That is pretty significant in its own right but there is still the question: why do teams which spend less time planning make more money?

I have two possible explanations.

I normally play three rounds of the game. When time is tight I sometimes stop the game after two rounds. In general teams usually score more money in each successive round. Therefore, teams who spend longer in planning are less likely to get to the third round so their score comes from the second round. If they had time to play a third round they would probably score higher than in round two.

This has a parallel in real life: if extra planning time delays the date a product enters the market it is likely to make less money. Delivering something smaller sooner is worth more.

This perfectly demonstrates that doing creates more learning than planning: teams learn more (and therefore increase their score) from spending 2 minutes doing than spending an extra 2 minutes planning.

The second possible explanation is that the more planning a team does the more difficult they might find it to rethink and change the way they are working.

The $1,600 shown was recorded by a Dutch team this year but the record is held by a team in Australia who scored over $2,000: to break into these high scores teams need to reinterpret the rules of the game.

One of the points of the game is to learn by doing. I suspect that teams who spend longer in planning find it harder to break away from their original interpretation of the rules. How can you think outside the box when you’ve spent a lot of time thinking about the box?

In one training session in Brisbane last year the teams weren’t making the breakthrough to the big money. Although I’d dropped hints of how to do this nobody had made the connection so I said: “You know, a team in Perth once scored over $2,000.” That caused one of the players to rethink his approach and score $1,141.

I’ve since repeated the quote and discovered that simply telling people that such high scores are possible causes them to discover how to score higher.

* * *

I’m sure there is more I could read into all this data and I will carry on collecting the data. Although now I have two problems…

First, having shared this data I might find people coming on my agile software training who change their behaviour because they have read this far.

Second: I need more teams to do this to gather data! If you would like to do this exercise – either as part of a full agile training course or as a stand alone exercise – please call (+44 20 3286 4292) or mail me, contact@allankelly.net, my rates are quite reasonable!

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Product Ownership book – a work in progress

Allan Kelly from Allan Kelly Associates

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A quick update: most of my recent blogs about the product owner role together with some new material, is now available in book form from LeanPub – https://leanpub.com/productownership.

I’m surprised to find I’ve written over 60 pages so far! Still, this is very much a work in progress, there are a few more chapters to add to part 1: The Product Owner role.

But it is part 2 which I’m itching to start writing: the tools of the trade.

For those who don’t know, the beauty of LeanPub is that you can buy my unfinished book now and you will receive updates – to your iPad, Kindle, PC, whatever – as they are produced.

That means three things to me.

Firstly I can receive your feedback – what do you like? What did I get wrong? What else should be in there?

Second, money is feedback, the more of you who buy the book the more motivated I am to write it – I like seeing sales, it tells me people want this book. And if you don’t buy… well maybe I should pivot and abandon it.

Third, it gives me a little beer money.

The bad news is: you also get my dyslexic spelling and grammar.

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Closing the Product Owner mini-series: they are all different!

Allan Kelly from Allan Kelly Associates

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With some final words I’d like to draw this mini-series on the Product Owner to a close and open a new chapter with a new book. I’ve written six blog posts in the last two months and I have drafts for more but there are other things I want to blog about.

I have drafts for more posts and ideas for even more. So its time to make this into another book: Product Ownership. This is on the LeanPub site now and you can buy it. So far it just contains a new prologue story but I’ll add these posts soon as the first chapters.

Ever since I wrote Little Book of User Stories I’ve thought there should be a companion volume: “Little Book of Product Ownership”. The intention is for the first part of the new book to discuss the product owner role – and whether it should even exist – and then quickly get into the tools of Product Ownership.

Now some closing words…

While I’ve suggest a lot of things that a Product Owner should do, and a few that they should not do, there are really no hard and fast rules about what a Product Owner should or should not do.

In the language of business schools: there is no contingent way of being a product owner, every product owner and organization is different and they need to find their own path. I cannot give you a flow chart for what a product owner does or should do, nor can I give you a set of rules to say “When the customer says Foo the Product Owner should do Bar.”

Every Product Owner has to work out what is right for them because every organization is different. And every organization will – rightly or wrongly – expect different things from the people it christens Product Owner.

Additionally every team is different and contains different skills and experience. As a result every team will differ in what it needs from the Product Owner(s) and how the team members can support the Product Owner and share the work.

And every Product Owner is themselves different and brings different skills, experience and insights to the role.

Job #1 for a newly appointed Product Owner is to sit down and decide what type of Product Owner they are expected to be and what type of Product Owner they want to be:

  • They may be a Backlog Administrator taking instructions from others.
  • They may be a Subject Matter Expert using their expert knowledge of the domain to decide what the right product to build is and help other team members understand the details of what is being built.
  • They may need to analyse internal process and business lines using the skills of Business Analysis.
  • They may need to get out on the road to meet customers – and potential customers – to understand the market and where the opportunities are using the skills of Product Management.
  • They may need to call on skills from other fields to: Project Management, Consulting and Entrepreneurship to name a few.

But a Product Owner is not some other things:

  • If they were a developer they need to accept they will not be coding any more. There simply isn’t time and anyway, they need to trust the team.
  • If they were a Project Manager, Development or Line Manager they need to resist any urge to tell people what to do or look too far into the future. They need to re-focus on value not time, and recognise that their authority comes from their competence not from a position on a chart.
  • Product Owners from a Business Analysis background need to look beyond Business Analysis, specifically they need to immerse themselves in the world of Product Management.
  • While Product Owners who were Product Managers probably have the easiest ride they too need to change, they need to think more about internal stakeholders, processes and delivery.

Every Product Owner and everyone working with Product Owners needs to read and reflect on the role. Hopefully some of the words in my recent posts – and the new book – will help with that – and hopefully some of you might like to hire me for advice or a training course – just call 🙂

Finally, I sincerely believe there are better Product Owners and not-so-good Product Owners, and that some organizations (teams, companies, enterprises) which offer a better environment for Product Ownership and equally there are those which are downright hostile to product ownership.

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The Product Owner refactored: the SPO/TPO model

Allan Kelly from Allan Kelly Associates

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Surprisingly I’ve never blogged about the Strategic Product Owner / Tactical Product Owner model, this is surprising because it is a model I both find again and again and advocate again and again.

I find lots of companies who have a version of this model in place, they have created the model to deal with their own situation. But few of these companies realise that this is a reoccurring solution and is quite legitimate. (I should write it up as a Pattern but I haven’t written any patterns for a while.)

More importantly I find that many companies and individuals faced with problems around Product Owners benefit from adopting this model. Specifically, as I’ve already mentioned there is a lot of work for a Product Owner to do and one way of doing this is to share the load.

If I were to write this up as a pattern the thumbnail version would say something like:

The Product Owner lacks the time – and sometimes skill – to fill the role fully therefore split the role in two. One person, the SPO (Strategic Product Owner), looks long term, they focus on customers and strategy. The other, the TPO (Tactical Product Owner), focuses on the near term (this sprint, the next sprint, the next quarter). The TPO spends most of their time with the delivery team while the SPO spends most of their time with customers and senior stakeholders.

Sometimes the Product Owner lacks time simply because – as I’ve said before – there is so much work the Product Owner should be doing they simply don’t have time.

Sometimes they lack time because the team is large, or the team lack domain knowledge (and therefore need to ask the PO lots of questions). Sometimes POs need to travel a lot to meet customers and even the most talented PO can’t be in two places at once.

They may also lack time because they have another job to do. While I think the Product Owner role is a full time job sometimes the person who is the right person to hold the role – usually because they command authority – needs to combine the work with another role.

For example, on a trading desk the Product Owner should probably be a senior trader who both knows the domain and has the authority to say Yes and No to features. But by definition such a person lacks time. Normally I’d want a dedicated Product Owner in place but sometimes the only way to have the necessary authority is to have another job.

And sometimes the person who is should be Product Owner – think our trader again – lacks the skills and experience to do the role. So again they need help.

The key thing about the SPO/TPO model is that the two people who hold the role need to speak with one voice. If they do not then the model will fail. Ideally the SPO will stand in when the TPO is unavailable and vice verse.

There is another occasion when the SPO/TPO model can be useful: big teams.

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Ideally there is one product owner, one team and one stream of work. But sometimes there are several products, teams and streams. Here you might have an SPO who looks at the long term and several TPOs each of whom works with one team on one stream.

Now, like all good patterns this one is not without its downsides…

I’ve heard Scrum-advocates argue against this model: One True Product Owner they say. And they have a point… putting more people between the delivery team and the customer does detract from communication.

One of the problems software development faces is when multiple people think they have the right to say what is built next. Another problem occurs when the customer is remote from the development team and multiple people mediate what is asked for.

Ideally developers can talk to customers directly but that is often not possible or desirable – I won’t go into the reasons right now. So a good solution is One True Product Owner.

But then the One True Product Owner becomes a bottleneck so we split the role SPO/TPO. Yet every-time we introduce another link – another person – between the coders and the customer the greater the propensity to introduce problems. So it becomes a balancing act.

Nobody in between is the can be ideal.

One person can make it better.

Two people can be an improvement over one.

Three… I need some convincing this is an improvement over two.

Four… I find it hard to believe that having four people mediate the voice of the customer is an improvement… unless of course you previously had five!

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The Product Owner is dead, long live the Product Owner!

Allan Kelly from Allan Kelly Associates

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For years I have been using this picture to describe the Product Owner role. For years I have been saying:

“The title Product Owner is really an alias. Nobody should have Product Owner on their business cards. Product Owner is a Scrum defined role which is usually filled by a Product Manager or Business Analyst, sometimes it is filled by a Domain Expert (also known as a Subject Matter Expert, SME) and sometimes by someone else.”

Easy right?

In telling us about the Product Owner Scrum tells us what one of these people will be doing within the Scrum setting. Scrum doesn’t tell us how the Product Owner knows what they need to know to make those decisions – that comes by virtue of the fact that underneath they are really a Product Manager, BA or expert in the field.

In the early descriptions of Scrum there was a tangible feel that the Product Owner really had the authority to make decisions – they were the OWNER. I still hope that is true but more often than not these days the person playing Product Owner is more likely to be a proxy for one or more real customers.

I go on to say:

“In a software company, like Microsoft or Adobe, Product Managers normally fill the role of Product Owner. The defining feature of the Product Manager role is that their customers are not in the building. The first task facing a new Product Manager is to work out who their customers are – or should be – and then get out to meet them. By definition customers are external.”

“Conversely in a corporate setting, like HSBC, Lufthansa, Proctor and Gamble, a Product Owner is probably a Business Analyst. There job is to analyse some aspect of the business and make it better. By definition their customers are in the building.”

With me so far?

Next I point out that having set up this nice model these roles are increasingly confused because software product companies increasingly sell their software as a service. And corporate customer interact with their customers online, which means customer contact is now through the computer.

Consider the airline industry: twenty years ago the only people who interacted with airline systems from United, BA, Lufthansa, etc. were airline employees. If you wanted to book a flight you went to a travel agent and a nice lady used a green screen to tell you what was available.

Today, whether you book with Lufthansa, SouthWest or Norwegian may well come down to which has the best online booking system.

Business Analyst need to be able to think like Product Managers and Product Managers need to be able to think like Business Analysts.

I regularly see online posts proclaiming “Product Managers are not Product Owners” or “Business Analysts are not Product Owners.” I’ve joined in with this, my alias argument says “they might be but there is so much more to those roles.”

It makes me sad to see the Product Manager role reduced to a Product Owner: the Product Owner role as defined by Scrum is a mere shadow of what a good Product Manager should be.

But the world has moved on, things have changed.

The world has decided that Product Owner is the role, the person who deals with the demand side, the person decides what is needed and what is to be built.

I think its time to change my model. The collision between the world of Business Analysts and Product Managers is now complete. The result is an even bigger mess and a new role has appeared: “Digital Business Analyst” – the illegitimate love child of Business Analysis and Product Management.

The Product Owner is now a superset of Product Manager and Business Analyst.

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Product Owners today may well need the skills of business analysis. They are even more likely to need the skills of Product Management. And they are frequently expected to know about the domain.

Today’s Product Owner may well have a Subject Matter Expert background, in which case they quickly need to learn about Product Ownership, Product Management and Business Analysis.

Or they may have a Business Analysis background and need to absorb Product Management skills. Conversely, Product Owners may come from a Product Management background and may quickly need to learn some Business Analysis. In either case they will learn about the domain but they may want to bring in a Subject Matter Expert too.

To make things harder, exactly which skills they need, and which skills are most important is going to vary from team to team and role to role.

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