YDS: Should We Track Business Value as We Would Velocity?

Join this channel to get access to the perks and exclusive videos:

What Is Your Take on tracking business value? Let us know in the comments!

Todd and Ryan discuss tracking business value as a metric similar to velocity. They believe that measuring business value is essential for understanding the success of products and that evidence-based management is a good approach. They also suggest that metrics such as cycle time, throughput, and item age may be more beneficial than velocity. They caution against using perceived business value, the perceived value of a product backlog item, instead of validated business value, which is the actual value delivered to customers. Todd and Ryan suggest that product owners should strive to measure validated business value and that evidence-based management can help in this respect.

Todd and Ryan also co-authored a book - Fixing Your Scrum: Practical Solutions to Common Scrum Problems.

For more information about Agile for Humans, visit:

#facilitation #facilitationskills #ScrumMaster #ScrumMasterTraining #Scrum #ScrumFramework #HowToBecomeAScrumMaster #ScrumMasterCertification #AgileForHumans #FreeScrumMasterCourse #FreeScrumTraining

[khayyambayramov]

Very interesting topic which needs more discussions.

[vkxcqsn]

The one thing I do like about perceived Business Value is that it gets people in the mode of thinking about PBIs from a perspective of delivering customer value. On less mature Scrum Teams, I have seen them think that PBIs is where you capture scheduled calls or tasks that have nothing to do with customer value.

Velocity - if a team really wants to use velocity, I let them use it if they find it useful. However, so far, my experience has been that people use it because that is the metric so many talk about. I was interested in velocity when I was first applying Scrum until I realized it was not going to allow me to effectively communicate with a sponsor. Given where I am now, I would probably continue using some element of flow metrics even with something that is Kanban-like. I haven’t had Developers complain about not having to estimate in Story Points even in more traditional-like projects.

Sometimes, management learns about Story Points and Velocity and think those things are Agile. Interestingly, when I have found out the goals, velocity has not come up as a measure that would indicate whether or not they are succeeding in fulfilling their goals.

[g-ronnmendoza]

Hope you can consider this as one of your topics: What type of value can we measure for an agile squad focusing on Run The Business items such as requirements for Legal and Compliance, Security, Technical Debt and fixing Prod Incidents?

[tomaszniemiec]

Interesting topic. I usually used business value as a way to prioritize the backlog items, a tool alike MoSCoW or WSJB etc. The value, similar to story points was a fictional number that is derived from stakeholder discussion about the items impact on the business.