The Professional Product Owner’s Guide To Maximizing

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The Professional Product Owner’s Guide toMaximizing Value with Scrum“This book presents a method of communicating our desires,cogently, coherently, and with a minimum of fuss andbother.”—Ken Schwaber, Chairman & Founder, Scrum.orgThe role of the Product Owner is more crucial thanever. But it’s about much more than mechanics: it’sabout taking accountability and refocusing on value asthe primary objective of all you do. In The ProfessionalProduct Owner, two leading experts in successful Scrumproduct ownership, Don McGreal and Ralph Jocham,show exactly how to do this. You’ll learn how to identifywhere value can be found, measure it, and maximize itthroughout your entire product lifecycle.ORDER & SAVESave 35% When You Orderfrom informit.com/TPPO andenter the code SCRUMORG duringcheckoutFREE US SHIPPING on print booksMajor eBook FormatsOnly InformIT offers PDF, EPUB, &MOBI together for one priceOTHER AVAILABILITYThrough O’Reilly Safari subscriptionserviceBooksellers and online retailersincluding Amazon/Kindle store andBarnes & Noble bn.comMcGreal and Jocham guide you through all facets ofenvisioning, emerging, and maturing a product using theScrum framework. They discuss strategy, lay out bestpractices for managing complexity and continuouslydelivering value, and they define the concrete practicesand tools you can use to manage Product Backlogs andrelease plans, all with the goal of making you a moresuccessful Product Owner. Throughout, the authors sharerevealing personal experiences that illuminate obstaclesto success and show how they can be overcome. Define success from the “outside in,” using externalcustomer-driven measurements to guide developmentand maximize value Bring empowerment and entrepreneurship to theProduct Owner’s role, and align everyone behind ashared business model Use Evidence-Based Management (EBMgt) to invest inthe right places, make smarter decisions, and reducerisk Effectively apply Scrum’s Product Owner role, artifacts,and events Populate and manage Product Backlogs, and use just-intime specifications Plan and manage releases, improve transparency, andreduce technical debt Scale your product, not your Scrum Use Scrum to inject autonomy, mastery, and purposeinto your product team’s work

The ProfessionalProduct OwnerLeveraging Scrum as aCompetitive AdvantageDon McGrealRalph JochamBoston Columbus Indianapolis New York San Francisco Amsterdam Cape TownDubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico CitySão Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo9780134686479 web.indb iii02/05/18 3:40 pm

Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks.Where those designations appear in this book, and the publisher was aware of a trademark claim, the designationshave been printed with initial capital letters or in all capitals.The authors and publisher have taken care in the preparation of this book, but make no expressed or impliedwarranty of any kind and assume no responsibility for errors or omissions. No liability is assumed for incidental orconsequential damages in connection with or arising out of the use of the information or programs contained herein.For information about buying this title in bulk quantities, or for special sales opportunities (which may includeelectronic versions; custom cover designs; and content particular to your business, training goals, marketing focus, orbranding interests), please contact our corporate sales department at corpsales@pearsoned.com or (800) 382-3419.For government sales inquiries, please contact governmentsales@pearsoned.com.For questions about sales outside the U.S., please contact intlcs@pearson.com.Visit us on the Web: informit.com/awLibrary of Congress Control Number: 2018934196Copyright 2018 Scrum.orgMicrosoft and/or its respective suppliers make no representations about the suitability of the information containedin the documents and related graphics published as part of the services for any purpose. All such documents andrelated graphics are provided “as is” without warranty of any kind. Microsoft and/ or its respective suppliers herebydisclaim all warranties and conditions with regard to this information, including all warranties and conditions ofmerchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement.In no event shall Microsoft and/or its respective sup-pliers be liable for any special, indirect or consequential damagesor any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence orother tortious action, arising out of or in connection with the use or performance of information available from theservices.The documents and related graphics contained herein could include technical inaccuracies or typographical errors.Changes are periodically added to the information herein. Microsoft and/or its respective suppliers may makeimprovements and/or changes in the product(s) and/or the program(s) described herein at any time. Partial screenshotsmay be viewed in full within the software version specified.Microsoft and Windows are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries.Screenshots and icons reprinted with permission from the Microsoft Corporation. This book is not sponsored orendorsed by or affiliated with the Microsoft Corporation.All rights reserved. This publication is protected by copyright, and permission must be obtained from the publisherprior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means,electronic, mechanical, photocopying, recording, or likewise. For information regarding permissions, request formsand the appropriate contacts within the Pearson Education Global Rights & Permissions Department, please visitwww.pearsoned.com/permissions/.ISBN-13: 978-0-13-468647-9ISBN-10: 0-13-468647-01189780134686479 web.indb iv02/05/18 3:40 pm

To my incredibly patient, supportive, and awesome wife Marita; also, to mylittle M&M’s, Meagan and Molly, for being constant sources of laughter,love, and inspiration.—DonTo my family—thanks for your understanding and lasting support. All ofthis, the travels, the long hours, would not have been possible without you.Natacha, you are the best and I love you. Noémie and Anaïs, thanks forkeeping me down to earth. You are the best daughters I could wish for.—Ralph9780134686479 web.indb v02/05/18 3:40 pm

ContentsForewordIntroductionAcknowledgmentsAbout the AuthorsxiiixvxxixxiiiPART IStrategy1Chapter 1Agile Product Management3QuizProduct Mindset versus Project MindsetWhat Is Product Management?The Product Management Vacuum and the Three VsVisionValueValidationProduct Management and ScrumThe Product OwnerDefining a ProductQuiz Review347911131415182231vii9780134686479 web.indb vii02/05/18 3:40 pm

ContentsChapter 2Chapter 3Chapter 4Vision33QuizBusiness ModelingBusiness Model CanvasProduct VisionFocusedPractical versus EmotionalPervasiveVisioning with ScrumTechnical StrategyQuiz Review33353540414649505153Value55QuizValue DefinedDelivering ValueValue MetricsEvidence-Based ManagementCurrent ValueTime to MarketAbility to InnovateTracking MetricsWhere Your Money GoesNegative ValueVisibleInvisibleValue NeutralityPerversion of MetricsQuiz QuizStakeholder FeedbackMarketplace FeedbackMinimum Viable ProductMinimum Viable Product through Kano9395979798viii9780134686479 web.indb viii02/05/18 3:40 pm

ContentsMVP PatternsPromotional MVPMining MVPLanding Page MVPWizard of Oz MVPSingle-Feature MVPPivot or PersevereQuiz Review102102103103103104104108PART IIScrum109Chapter 5Empiricism111QuizIt’s a Complex ProblemCertainty QuizVisualizing ting It All TogetherTypes of ComplexityManaging RiskQuiz 135QuizWhy a Framework?The Pillars of ScrumTransparencyInspectionAdaptationScrum RolesProduct OwnerDevelopment Team135136139140140141141142145Chapter 6ix9780134686479 web.indb ix02/05/18 3:40 pm

ContentsPART IIIChapter 7Scrum MasterOthersScrum ArtifactsProduct BacklogSprint BacklogIncrementOthersScrum EventsSprintSprint PlanningDaily ScrumSprint ReviewSprint RetrospectiveOtherIterative and IncrementalAgile Manifesto for Software DevelopmentQuiz 4186188Tactics189Product Backlog Management191QuizWhat Is a Requirement?Product BacklogUser StoriesNonfunctional RequirementsEpicsAcceptance CriteriaSpikesProduct Backlog OrderingMeasuring Value, Risk, and Size“Done”Definition of “Done”Example Definition of 9780134686479 web.indb x02/05/18 3:40 pm

ContentsChapter 8“Ready” Is a MindsetGetting to ReadyLean Requirements ManagementStory MappingSteps to Creating a Story MapExplore the Story MapStory Maps and Product BacklogsThe Past and the FutureImpact MappingSuccess CriteriaSpecification by ExampleQuiz Review224227230232233234235236236239241248Release Management249QuizReasons to ReleaseRelease StrategyMajor ReleasesMinor ReleasesFunctional ReleasesEstimation and VelocityManaging Multiple TeamsScaling ProductsOne Product, One Development TeamSeveral Products, One Development TeamSeveral Products, Several Development TeamsOne Product, Several Development TeamsThe Nexus FrameworkReportingForecasting BasicsForecasting Across Multiple ProductsPercentage of CompletionMonte Carlo SimulationWhich Color Is Your 2273274278280282287xi9780134686479 web.indb xi02/05/18 3:40 pm

ContentsChapter 9IndexBudgetingGovernance and ComplianceKickoffQualityDefinitionsTypes of QualityKeeping QualityQuiz Review289294300304304306307313The Professional Product Owner315Understanding Product Owner SuccessThe Receiving Product OwnerThe Initiating Product OwnerYouSkills and TraitsMeasuring Success316316317317318321323xii9780134686479 web.indb xii02/05/18 3:40 pm

ForewordCom m unic ation , I nte ntiona lit y, and Fulfillme ntYou may have something you want done. You may have a vision you wantfulfilled (a new way for people to travel between two places); a product youwant created (a water slide at a lake, or a quantum computer); an improvementthat you want to make to something (customer service is quicker, moreeffective, friendlier). Regardless, you are a person who has the authority andresources to try to get what you want. But you find it very, very hard.Your skill is visioning what you want. Your skill is not necessarily buildingwhat you want (even if you could, you don’t have time to do so).You just have to tell someone what you want, fund and provision themadequately, and the result will be great (or at least satisfying).We assume when we communicate with other people that they understand whatwe mean. Not necessarily so. You may be inarticulate or incomprehensible.The people you communicate with may be dunderheads.xiii9780134686479 web.indb xiii02/05/18 3:40 pm

ForewordEven more distressing, we assume that we know what we mean, even thoughwe may not have thought it through accurately or completely. Our attemptedcommunication may be premature. But, who has time to wait?!This book presents a method of communicating our desires, cogently, coherently, and with a minimum of fuss and bother. Otherwise, we can alienate ourallies, waste our capital, and cause irreparable damage. I know.A great strength of Scrum is your ability to frequently check the clarity ofwhat is being communicated, as well as how well the others perceive what youare communicating.Frequent inspection of the clarity of communications and the consequences isimportant. It is particularly important at the start of an endeavor when weare just learning how to communicate what the results may be. As we getbetter at communicating, the communications become more precise. With lesseffort, we learn how to determine the unknown and turn it into clarity, andwe get the results we desire.As the person who wants something, when you use Scrum to improve communications and the outcomes, your role is called the Product Owner. DonMcGreal and Ralph Jocham have written this book to help you use Scrum todo so. They should know because they have done it.—Ken Schwaberxiv9780134686479 web.indb xiv02/05/18 3:40 pm

I ntroductionThis book describes how to effectively manage man-made products, mostlysoftware products. But it just as easily could address other man-madeproducts such as electrical grids, nuclear power plants, apple orchards, nanorobots, even storm-drainage systems. Anything envisioned, created, sustained,and eventually retired or replaced by people is within our purview.We specifically address complex products, where more is unknown abouttheir context than is known. The product’s creator—its Product Owner—perceives a space of ideas and conceives something that others might findvaluable or useful.Take as an example the first version of iOS developed for the iPhone. As thisproduct was being conceived and created, more was unknown than known,and a certain degree of success and failure was involved. The Product Ownerbrought the vision to a small group of people who had expertise in the necessary technology, market, and products. This group employed empiricism andsmall self-organizing teams to manage the creation and development of iOS,to control the risk, and to create value.xv9780134686479 web.indb xv02/05/18 3:40 pm

IntroductionSometimes an idea isn’t ready for prime time. The technology might not beadequate for the vision, or the people may not be adequately skilled.However, the risk is controlled through short cycles of experimentation.This process is called Scrum,1 a framework for creating and then furtherdeveloping complex products. Scrum identifies the Product Owner as theperson who brings the product to life, from vision to creation, and whoremains responsible for the product’s viability as it develops and continuesthrough its life cycle. A Product Owner is the one person who is accountablefor a product at any point in time.A product does things, performs functions, or causes change or results.A product’s life cycle includes the following components: Creation—A product is envisioned and parts of it come to life, so it hassome of the capabilities and can perform some of the functions that havebeen envisioned for it. Emergence—As the product is used and time passes, new capabilities andfunctions appear. These may be created for it or may be appended to it byinterfaces to other products. Maturity—The product reaches maturity when fully capable, as envisionedand as emerged, as shaped by marketplace forces, new technologies, andthe capabilities of its Product Owners. Senescence—Over the hill, the product is still used but has been eclipsed bynewer, easier, more appealing products that have more or fewer capabilities,at greater or lesser prices, but are preferred by the marketplace and aremore valuable.A product could be a computer, software the computer is operating,a security system, a camera, a car, a workflow system, just-in-time-inventorysoftware, a rocket, or a business function that uses one or more of the aboveand performs a function for an organization.1. “Scrum Guides,” Scrum.org, accessed March 4, 2018, http://scrumguides.org.xvi9780134686479 web.indb xvi02/05/18 3:40 pm

IntroductionExamples of notable products and Products Owners include the following: Self-landing rockets—Elon Musk Electric cars—Elon Musk iPhones—Steve Jobs Polaroid camera—Edwin Land Model T car—Henry Ford Scrum—Ken Schwaber and Jeff SutherlandThese Product Owners were visionaries, people who imagined different methods of doing things, envisioned products to accomplish these things, and thencaused these products to emerge. For these products to be remembered, theirProduct Owners had to guide them to maturity in the marketplace, wherethey proved themselves useful to people or organizations.Scrum helps Product Owners during the visionary phase by simplifyingdemands on them. Product Owners who can excite, can envision, can causethe product to emerge are sometimes less skilled at managing and administering the product as it matures. That requires a person trained in more traditional skills such as manufacturing, inventory, marketing, sales, support,service, and invoicing. A Product Owner who has both sets of skills is theprofessional Product Owner.Most of us are familiar with Product Owners who oversee products in themature phase of their life cycles. To the extent that they are working closelywith their stakeholders and are imbued with the vision, they are successful.Product Owners who also run the business, respond to market forces, andhelp the product morph as new technologies and ideas emerge help it tobecome more useful.Senescence is a difficult part of the product life cycle. We have all seen products from IBM, CDC, Xerox, Kodak, Motorola, Nokia, Blackberry, Wang,DEC, and other organizations that reach this point in their life cycles. To theextent that these products are gracefully ridden into their graves, they sustainthe organizations that hosted them through maturity. Now they are on lifexvii9780134686479 web.indb xvii02/05/18 3:40 pm

Introductionsupport. If they have been successfully carried through maturity, they mayhave provided an opportunity for new visionaries to come up with new products that can sustain the organization. Usually not.This book describes how a person acting in the role of Product Owner canuse Scrum to envision, emerge, and mature a product. Throughout the lifecycle, the product is passed from person to person. In our view, it has to bepassed from one accountable individual to the next accountable individual.That single person, the Product Owner, is responsible for everything thathappens regarding the product, its value to its host organization, and to thosewho use it.The Product Owner causes the product to live and grow in many differentways, such as development, partnerships, and interfaces. However, this oneindividual is the “buck stops here” person; he or she alone, not a committeeor group, fulfills this function.We have a great example of this in the United States with the Affordable CareAct (ACA) and the healthcare.gov site. When it was time for ACA to come tolife, it didn’t. It didn’t respond on the Internet, it would not allow people toregister, it confabulated data. And who was responsible for this disaster, thisembarrassment? Nobody was sure.A successful child has many parents. A failure has none.—based on Tacitus, Agricola, ca. 98 ADEventually, the Secretary of Health, Education, and Welfare said that she wasresponsible, but she meant only that she was in the wrong place at the wrongtime – not the Product Owner.If you have a product at some point in its life cycle, and you want to useScrum to create more value in it for its users, you will be its Product Owner.This book aims to tell you how to do so.This book is part of a series of books by Scrum.org known as the professional series. This series was founded on a uniform set of values that bind thexviii9780134686479 web.indb xviii02/05/18 3:40 pm

Introductionpeople involved in work, so that they can trust each other, minimize waste,and succeed.2H ow to R e a d Thi s B ookThis book is laid out in a way that assumes you have some Scrum knowledge.If you are new to Scrum, we suggest you look first at Part II.We reference the official Scrum Guide by Ken Schwaber and Jeff Sutherland(creators of Scrum) throughout the book and have made every effort to stayconsistent with its language. For example, we capitalize official Scrum termsfor roles, artifacts, and events the same way the Scrum Guide does.Each chapter is relatively independent. Chapters are grouped into t

Product Owner’s role, and align everyone behind a shared business model Use Evidence-Based Management (EBMgt) to invest in the right places, make smarter decisions, and reduce risk Effectively apply Scrum’s Product Owner role, artifacts, and events Populate and manage Product

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