from DSSResources.com


What is value-driven delivery of projects and work?

Daniel J. Power
Editor, DSSResources.com

Many people place more importance and value on what can be seen and touched. For example, software can be seen and "touched" with a user interface device like a mouse. Software is a tangible aspect of work, as opposed to the intangible benefits of some work projects like greater productivity. Value is a measure of both tangible and intangible benefits created through the delivery of goods or services. Value is usually more than financial benefits and value is often estimated or forecasted. For example, a project that is projected to increase customer satisfaction will also deliver value to an organization. Components of value must be commensurable, measurable by the same standard, so that comparisons can be made.

Tangible value can be measured and is concrete. The tangible value of a work product represents the benefits that are quantifiable and measurable. Intangible value results from a belief that the system will provide important, though hard to measure benefits to the company or organization.

Value-driven means that value is the major decision criterion in prioritizing prejct deliverables, requirements and user stories. The highest value items are delivered first whenever possible. Constaints may alter the prioritization, but value should be first and foremost on the minds of team members.

Managers, stakeholders and the project team must forecast or project cost, schedule, budget, resource requirements, technology trends and value. Forecasting the value of a project and its components helps managers decide whether a project is beneficial and should proceed or if it is better to stop the project. Each user story has a value that is based upon potential benefits and potential costs of delivering the user story. A project has the highest value when its value exceeds that of alternative uses of the resources. Some projects have a very short payback period, the amount of time needed to regain the net amount invested in it.

The product owner and team members should routinely reassess the value of items in the product backlog and prioritize the items, requirements/tasks, and user stories based on value to the client/customer. Backlog items can be added, removed, reprioritized, and redefined. In some situations, backlog items are classified in one of 3 categories as 1) meeting basic needs, 2) meeting performance needs, and 3) meeting excitement needs. Generally, those items classified as meeting basic needs have higher value and higher priority. The items that are put in a specific sprint backlog should generally be the high-value items remaining in the project or product backlog.

Delivering value to the customer is crucial. The customer is paying for the final deliverable, whether a product or service. Customers assess value both before and after delivery of the product or service. Know your customer and what the customer values. Collaborate with the customer to better understand what is valued.

References

https://www.simplilearn.com/value-driven-delivery-part-1-tutorial

https://en.wikipedia.org/wiki/Kano_model

Last update: 2019-06-27 03:25
Author: Daniel Power

Print this record Print this record
Show this as PDF file Show this as PDF file

Please rate this entry:

Average rating: 0 from 5 (0 Votes )

completely useless 1 2 3 4 5 most valuable

You cannot comment on this entry





DSS Home |  About Us |  Contact Us |  Site Index |  Subscribe | What's New
Please Tell Your Friends about DSSResources.COMCopyright © 1995-2015 by D. J. Power (see his home page).
DSSResources.COMsm is maintained by Daniel J. Power. Please contact him at djpower1950@gmail.com with questions. See disclaimer and privacy statement.


Google
 
Web DSSResources.com

powered by phpMyFAQ 1.5.3