More Related Content Similar to How to Ensure Your Backlog Will Deliver Customer Value (20) How to Ensure Your Backlog Will Deliver Customer Value2. How to ensure your
backlog will deliver
customer value
DAN OLSEN
APR 11, 2019
How To Ensure Your Backlog
Will Deliver Customer Value
Dan Olsen Apr 11, 2019
3. My Background
Copyright © 2019 @danolsen
n Engineering: submarine design
n Stanford MBA
n Product Management leader at Intuit & startups
n CEO & Cofounder, TechCrunch winner YourVersion
n Product Management consultant
n Founder: Lean Product Silicon Valley
Twitter: @danolsen
My slides: https://dan-olsen.com
5. Copyright © 2019 @danolsen
Agile answers the question:
“How should we build the product?”
Agile doesn’t answer the question:
“What product should we build?”
6. What Is Your Team’s Limiting Factor?
n What if you had world’s fastest velocity?
n What if your code was the highest quality?
n What would be the limiting factor in
delivering customer value?
Copyright © 2019 @danolsen
8. Copyright © 2019 @danolsen
Discover Define Design Develop
Who is the customer?
What are their needs?
How will we meet their needs?
How will we be better?
What is our feature set?
What is our UX?
Usability & delight
User testing
Build it
Product Process: The 4 D’s
24. The Lean Product Process
1. Determine your target customer
2. Identify underserved customer needs
3. Define your value proposition
4. Specify your MVP feature set
5. Create your MVP prototype
6. Test your MVP with customers
Copyright © 2019 @danolsen
25. Transportation within 100 miles of my home
Soccer Mom Speed Demon
Carry kids & gear
Safety
Fuel economy
Go fast
Looks cool
Makes me look cool
Target Customer Has Distinct Needs
High-level need
Target Customer
Detailed needs
Ideal Product
Soccer Parent Speed Demon
26. The Lean Product Process
1. Determine your target customer
2. Identify underserved customer needs
3. Define your value proposition
4. Specify your MVP feature set
5. Create your MVP prototype
6. Test your MVP with customers
Copyright © 2019 @danolsen
27. Russians: pencil
Space pen: $1 M R&D cost
Example
n Ability to write in space
(zero gravity)
Problem Space vs. Solution Space
Problem Space
n A customer problem, need
or benefit that the product
should address
n A well-written user story
Solution Space
n A specific
implementation to
address the customer
need or requirement
Copyright © 2019 @danolsen
30. Keep User Stories in Problem Space
Relegate solutions to subtasks
User story 1 (problem space)
n Subtask 1.A (solution space)
n Subtask 1.B (solution space)
n Subtask 1.C (solution space)
Copyright © 2019 @danolsen
31. User Story with Subtasks Example
As an airline traveler, I want to filter search
results by how long the flight is so I can easily
see the shortest flights
n Add slider UI control to specify max flight time
n Expand API method to add flight time as input
n Add index to flight time column in database
Copyright © 2019 @danolsen
32. Problem vs. Solution Space: Product Level
Problem Space
(user benefits)
Solution Space
(product)
TurboTax
TaxCut
Pen and
paper
Prepare
my taxes
Copyright © 2019 @danolsen
33. Problem vs. Solution Space: Product Level
Problem Space
(user benefits)
Solution Space
(product)
Prepare
my taxes
File my
taxes
Check my
taxes
Maximize my
deductions
Reduce my
audit risk
Copyright © 2019 @danolsen
35. Solution SpaceProblem Space
Problem vs. Solution Space: Feature Level
Copyright © 2019 @danolsen
Save time filing
taxes
Save time
preparing taxes
Maximize my
tax deductions
Check my
return
Reduce my
audit risk
Help me
prepare taxes
Empowerment/
Confidence
Save Time
Save Money
Tax Interview
Wizard
Audit Risk
Analyzer
Tax Return
Error Checker
Tax Data
Downloader
Electronic Tax
Return Filing
Tax Deduction
Finder
36. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Low High
Low
High
Copyright © 2019 @danolsen
37. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Low High
Low
High
Copyright © 2019 @danolsen
38. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Low High
Low
High
Not Worth Going After
Copyright © 2019 @danolsen
39. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Competitive
Market
Low High
Low
High
Not Worth Going After
Copyright © 2019 @danolsen
40. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Low High
Low
High
Copyright © 2019 @danolsen
41. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Competitive
Market
Low High
Low
High
Not Worth Going After
Copyright © 2019 @danolsen
42. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Competitive
Market
Opportunity
Low High
Low
High
Not Worth Going After
Copyright © 2019 @danolsen
43. Prioritizing Needs: Importance vs. SatisfactionImportanceofUserNeed
User Satisfaction with Current Alternatives
Low High
Low
High
Copyright © 2019 @danolsen
44. Creating Customer Value
Copyright © 2019 @danolsen
ImportanceofUserNeed
User Satisfaction with the Product
Low High
Low
High
Area =
Customer
Value
Created
Area =
Opportunity
to Create
Customer
Value
45. Users Rated 13 Key Features in a Survey
Recommended reading:
What Customers Want by Anthony Ulwick
Great
Copyright © 2019 @danolsen
Bad
46. The Lean Product Process
1. Determine your target customer
2. Identify underserved customer needs
3. Define your value proposition
4. Specify your MVP feature set
5. Create your MVP prototype
6. Test your MVP with customers
Copyright © 2019 @danolsen
47. Kano Model: User Needs & Satisfaction
Need
not met
Need
fully met
Copyright © 2019 @danolsen
48. Kano Model: User Needs & Satisfaction
User Satisfaction
User Dissatisfaction
Need
not met
Need
fully met
Copyright © 2019 @danolsen
49. Kano Model: User Needs & Satisfaction
User Satisfaction
User Dissatisfaction
Performance
(more is better)
Delighter (wow)
Need
not met
Need
fully met
Must Have
Copyright © 2019 @danolsen
50. Kano Model: User Needs & Satisfaction
User Satisfaction
User Dissatisfaction
Performance
(more is better)
Delighter (wow)
Need
not met
Need
fully met
Must Have
Needs & features
migrate over time
Copyright © 2019 @danolsen
51. What is Your Value Proposition?
n Which user benefits are you providing?
n How are you better than competitors?
Must Have Benefit 1
Performance Benefit 1
Performance Benefit 2
Performance Benefit 3
Delighter Benefit 1
Delighter Benefit 2
Copyright © 2019 @danolsen
52. What is Your Value Proposition?
n Which user benefits are you providing?
n How are you better than competitors?
Competitor A Competitor B You
Must Have Benefit 1
Performance Benefit 1
Performance Benefit 2
Performance Benefit 3
Delighter Benefit 1
Delighter Benefit 2
Copyright © 2019 @danolsen
53. What is Your Value Proposition?
n Which user benefits are you providing?
n How are you better than competitors?
Competitor A Competitor B You
Must Have Benefit 1 Y Y
Performance Benefit 1 High Low
Performance Benefit 2 Low High
Performance Benefit 3 Med Med
Delighter Benefit 1 Y -
Delighter Benefit 2 - -
Copyright © 2019 @danolsen
54. What is Your Value Proposition?
n Which user benefits are you providing?
n How are you better than competitors?
Competitor A Competitor B You
Must Have Benefit 1 Y Y Y
Performance Benefit 1 High Low Med
Performance Benefit 2 Low High Low
Performance Benefit 3 Med Med High
Delighter Benefit 1 Y - -
Delighter Benefit 2 - - Y
Copyright © 2019 @danolsen
57. Instagram Value Prop
Other Photo
Sharing Apps Instagram
Must Haves
Let me share my photos Y Y
Performance benefits
Delighters
Copyright © 2019 @danolsen
58. Instagram Value Prop
Other Photo
Sharing Apps Instagram
Must Haves
Let me share my photos Y Y
Performance benefits
Post my photos quickly Low High
Delighters
Copyright © 2019 @danolsen
59. Instagram Value Prop
Other Photo
Sharing Apps Instagram
Must Haves
Let me share my photos Y Y
Performance benefits
Post my photos quickly Low High
Delighters
Make my photos look good
(filters, square aspect ratio)
N Y
Copyright © 2019 @danolsen
60. Instagram Value Prop
Other Photo
Sharing Apps Instagram
Must Haves
Let me share my photos Y Y
Performance benefits
Post my photos quickly Low High
Delighters
Make my photos look good
(filters, square aspect ratio)
N Y
Copyright © 2019 @danolsen
63. The Lean Product Process
1. Determine your target customer
2. Identify underserved customer needs
3. Define your value proposition
4. Specify your MVP feature set
5. Create your MVP prototype
6. Test your MVP with customers
Copyright © 2019 @danolsen
64. For Each Benefit: Brainstorm Features,
Then Break Features Into Chunks
Must
Have 1
Performance
1
Delighter
1
Delighter
2
Must
Have 2
Performance
2
Performance
3
Benefits:
M1A P1A D2AM2A P2A
P3B
Features:
P1B D2BP2B
P3C
P3A
P1C
P1D
Copyright © 2019 @danolsen
65. Write User Stories and Subtasks
n User story 1 (problem space)
n Subtask 1.A (solution space)
n Subtask 1.B (solution space)
n User story 2 (problem space)
n Subtask 2.A (solution space)
n Subtask 2.B (solution space)
Copyright © 2019 @danolsen