FSOFT PMI-ACP

EXAM PREP
Domain II. Value-Driven Delivery
Version: 1.0

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 Domain II. Value-Driven Delivery

What & Why Value-Driven Delivery?

Assessing Value

Prioritizing Value

Delivering Incrementally

Agile Contracting

Verification & Validating Value

CI/ TDD/ ATDD

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 Summary

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Key Topics

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Tasks

1. Plan work incrementally. 8. Refactor often.

2. Gain consensus on just-in-time acceptance 9. Optimize environmental, operational, and
criteria. infrastructure factors.
3. Tune process to organization, team, and project. 10. Review and checkpoint often.
4. Release minimal viable products. 11. Balance adding value and reducing risk.
5. Work in small batches. 12. Reprioritize periodically to maximize value.
6. Review often. 13. Prioritize nonfunctional requirements.
7. Prioritize work. 14. Review and improve the overall process and
product.

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 What & Why
Value-Driven?

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Agile Approach
» Value driven - early and
continuous delivery of value
» Focus on people and interactions
» Cross functional Self organizing
teams
» Agility is everyone’s Responsibility
» Embrace changes even late in
development
» Working software as the primary
measure of progress

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Value-Driven Delivery
» The reason projects are undertaken
is to generate business value, be
it to produce a benefit or
improve a service.

» Delivering value is the reason for

doing projects, then value-driven
delivery must be our focus
throughout the project.

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Value Sample

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Value Sample

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Agile Value
Proposition

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Delivery Value, by how?

» Working software over

comprehensive documentation
» Deliver working software
frequently
» Working software is the primary
measure of progress

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Delivery Value Early

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Delivery Value Early
» Deliver the highest-value portions of the project as soon as possible
» The longer a project runs, the longer the horizon becomes for risks that can reduce value
such as failure, decreased benefits, erosion of opportunities
» To maximize success, we have to try to deliver as many high-value components as soon as
we can, before things change or go sideways
» Stakeholder satisfaction plays a huge role in project success
» Engaged, committed sponsors and product owners are vital for removing project obstacles
and declaring success.
» By delivering high-value elements early, the team demonstrates an understanding of the
stakeholders’ needs, shows that they recognize the most important aspects of the project,
and proves they can deliver.
» Tangible results help the team raise the confidence of stakeholders, build rapport with
them, and get them on board early, creating a virtuous circle of support.
» Value-driven delivery means making decisions that prioritize the value-adding
activities and risk- reducing efforts for the project, and then executing based on
these priorities

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Minimize Waste
» Wasteful activities reduce value
» Poppendiecks’ list of seven wastes:
» Partially done work
» Extra processes
» Extra features
» Task switching
» Waiting
» Motion
» Defects

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Identify Waste
» What’s lurking to do in the project?
» Where are bottlenecks and time sucks?
» Are team members pulled between activities?
» What are you and the team waiting for?
» What type of escaped defects have you experienced?

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 Assessing Value

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Financial Assessment Metrics
» Return on investment (ROI)
» Internal rate of return (IRR)
» Net present value (NPV)

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Internal rate of return (IRR)

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Net present value (NPV)

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Earned Value
Management
(EVM)
Example:
• We planned to complete 30 story points
in the last iteration, but we only
completed 25 points. To find our SPI, we
divide 25 by 30 for an SPI of 0.83. This
tells us that we are working at only 83
percent of the rate planned.

• CPI is the earned value (EV, or value of

completed features) to date divided by
the actual costs (AC) to date. So in the
above diagram, CPI = $2,200,000 /
$2,800,000 = 0.79. This means we are
only getting 79 cents on the dollar
compared to what we had predicted.

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Key Performance Indicators (KPIs)
» Rate of progress:
» How many features or user stories are getting completed and accepted by the
product owner per week or month?
» Example: 20 points per week, 8% per month, etc …
» Remaining work: How much work is left in the backlog?
» Likely completion date:
» How much work there is left to do and divide it by our current rate of progress?
» Example: remain (500 story points)/ Rate of progress (20 sp/ w) = 25 weeks
» Likely costs remaining:
» For simple projects, this will be the salary burn rate for the team multiplied by the
remaining weeks left
» There may also be other fixed costs that we need to take into account, such as
licenses, equipment, deployment and training costs, and so on

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KPIs and Project Life Cycles

» Predictive life cycle

» Performance measurement
baseline
» Scope
» Schedule
» Cost

» Agile life cycle

» All about getting things done
» Likelihood of targets
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Manage Risk
» To maximize value, agile teams need to consider risks and technical
dependencies
» Risk is closely related to value => negative project risks (threats) as anti-
value factors => potential to erode, remove, or reduce value if they occur.
» To maximize value, we must also minimize risk, since risks can reduce value
=> Value-driven delivery domain also encompasses the concept of risk
reduction.
» Agile practices are actually very well suited for rapidly identifying and
reducing risks
» Iteractive development allow high-risk work to be tackled early in the life
cycle
» The primary tools that Agile team use to manage risk are risk-adjusted
backlog and risk burn down charts (detailed in domain 6)
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Risk-Adjusted Backlog
» In planning each iteration, agile teams seek to balance delivering the
highest-value features and mitigating the biggest risks that remain on the
project
» They do this by moving the items with the greatest value and risk to the
top of their backlog
» The backlog might start out as just a list of the business features involved
in the project, divided into practical bundles of work—but once the risk
response activities are added and prioritized
» This single prioritized list is what allows agile teams to focus
simultaneously on both value delivery and risk reduction activities.

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Risk-Adjusted Backlog

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Risk BurnDown Chart

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Regulatory Compliance
» Regulations are typically designed to ensure safety; so while the mandated
documentation and quality procedures may seem burdensome to the
project team; they serve an important purpose
» There are two simple approaches for incorporating regulatory compliance
work into agile projects.
» Weave it into the regular development work as the team progresses
» Allow time after creating the product to undertake the regulatory work and produce
the required evidence and documentation
» There are pros and cons to each approach:
» Doing the compliance work “as you go” keeps it linked and relevant to the current
work.
» Doing the compliance work after product development doesn’t allow us to tweak our
practices on the go.

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 Prioritizing Value

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Customer Valued Prioritization
» Agile teams work on the items that yield the highest value to the
customer first
» The product owner is responsible for keeping items in the backlog
prioritized by business value
» When changes are added to backlog, they must be prioritized for value
» The customer is the person who will declare what success looks like
» The team will discuss with the customer at the end of each iteration the
priority of the remaining

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Prioritization
Simple Schemes
Schemes
MoSCoW

Monopoly Money

100-Point Method

Dot Voting or Multi-Voting

Kano Analysis

Requirements Prioritization Model

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Prioritization Schemes - MoSCoW

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Prioritization Schemes
» Monopoly Money: the amount of project budget & ask them to distribute
those funds among the system features
» 100-Point Method: each stakeholder is given 100 points that he/ she can
use to vote for most important requirement
» Dot Voting or Multi-Voting: each stakeholder gets a predetermined
number of dots (or check marks, sticky stars, etc.) to distribute among the
options presented.
» Eg: When deciding how many votes to give each person, a good rule of thumb is 20
percent of the total number of items. So if there are 40 items to be voted on, we
would calculate 40 x 0.2 = 8, and everyone would get 8 votes to distribute.

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Prioritization Schemes – Kano Analysis

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Requirements Prioritization Model
» Created by Karl Wiegers
» With this approach, the benefit, penalty, cost, and risk of every proposed
feature is rated on a relative scale of 1 (lowest) to 9 (highest).
» Customers rate both the benefit score for having the feature and the
penalty score for not having it.
» Developers rate both the cost of producing the feature and the risk
associated with producing it
» The numbers for each feature are then entered into a weighted formula
that is used to calculate the relative priority of all the features.

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 Relative Prioritization/Ranking

» End goal is
understanding
the priority of
features
» Great if we just
simply asking
the customer in
order of
relative priority

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 Delivering
Incrementally

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Delivery Incremental
» Incremental delivery is another
way that agile methods optimize
the delivery of value
» In the case of software
development projects, team could
delivery to production in
increment
» Incremental delivery reduces the
amount of rework by finding
issues earlier & thereby
contributing to the delivery of
value on the project

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Minimal Viable Product (MVP)
» The term “minimal viable product,“ or MVP (also known as “minimal
marketable feature,” or MMF) refers to this package of functionality that is
complete enough to be useful to the users or the market
» Yet still small enough that it does not represent the entire project

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Minimal Viable Product (MVP)

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Agile Tooling
» Agile team prefers low-tech, high-touch tools
over sophisticated computerized method
» One key reason agile team value these types
of tools is that low-tech, tangible objects
promote communication & collaboration
» In keeping with the low-tech, high-touch
approach, agile teams make widespread use
of tangible tools such as task boards, user
stories written on 3-by-5-inch index cards, and
numbered card decks for planning poker
sessions
» Agile teams use low-tech, high-touch tools
such as task boards as their primary method
of tracking and reporting value

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Task/Kanban Boards
» They are the primary tool for
planning and monitoring the
progress of the work.
» A task or Kanban board is generally
a whiteboard with columns that
show the various stages of work
» The tasks that are being worked on
are represented by sticky notes
that team members move through
the columns to show their progress

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Task/Kanban Boards
» Work In Progress (WIP)
» WIP Limit
» Cumulative Flow Diagrams (CFDs)
» Little’s Law: the duration of a work
queue is dependent on its size,
which is why limiting WIP is such a
key principle of the Kanban
methodology

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 Agile Contracting

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Agile Contracting
» If a vendor needs to use an agile
approach to participate in the project,
then this requirement should be
outlined in the request for proposal
(RFP).
» Agile teams know that the
requirements may change and the
scope is negotiable, traditional vendor
contracts based on formal
specifications are problematic.
» Agile projects typically use contracting
models designed for an agile
environment, such as the fixed-price
work packages and graduated fixed-
price contracts

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DSDM Contract

Change for Free Money for Nothing

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DSDM Contract Traditional Statement of
Work versus Fixed-Price
Fixed-Price Work Package Work Package
» Fixed-price work packages mitigate the risks
of underestimating or overestimating a
chunk of work by reducing the scope and
costs involved in the work being estimated
» Using fixed-price work packages allows the
customer to reprioritize the remaining work
based on evolving costs. It also gives the
supplier the ability to update their costs as
new details emerge, removing the need for
the supplier to build excess contingency
funds into the project cost
» The changes are then localized to small
components (the work packages). If extra
funding is required, it is easy to identify the
need and justify it.

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Graduated Fixed-Price Contract

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Graduated Fixed-Price Contract
» The customer retains flexibility to reprioritize work, and the seller is not
penalized for sharing information about increased costs.
» Remove the incentive for the seller to add large contingencies to the
project price
» By combining elements of a graduated fixed-price contract and fixed-price
work packages and incorporating the concepts of early termination
(money for nothing) and reprioritization (change for free), we can create a
contract that protects both parties and encourages positive behavior.

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 Verification &
Validating Value

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Verification & Validating Value

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Verification & Validating Value
» It is one thing to think we are building great products and services and
another thing entirely to have the sponsors, users, or product owner
confirm this
» Agile methods are often used on projects that are intangible (such as
designs, software, etc.).
» The intangible nature of these end products means it is all that much more
important to validate that what we are building is, in fact, on the right track
and seen as highly valuable by the business

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Frequent Verification & Validation
» Agile techniques are designed to
resolve problems as soon as
possible, before they can grow
bigger and move up the cost of
change curve
» Frequent verification and validation
is practiced at many levels on agile
projects
» With frequent verification and
validation, we are checking to
make sure things are working and
progressing as they should, as well
as looking for any mismatches in
expectations
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Frequent Verification & Validation

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Testing and Verification in Software Development
» Agile software projects automate as many of their tests as possible, which
removes the human element from their execution.
» Automation also allows the tests to be run more frequently at a lower cost
» The goal of frequent verification and validation is to find issues as soon as
possible and keep them low on the cost of change curve

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Testing and Verification in Software Development
» Exploratory and Usability Testing
» Exploratory testing
» Differs from scripted testing that attempts to exercise all the functional components of a system
» Relies on the tester’s autonomy, skill, and creativity in trying to discover issues and unexpected
behaviour.
» Usability testing
» Attempts to answer the question, “How will an end user respond to the system under realistic
conditions?”
» diagnose how easy it is to use the system, and help uncover where there are problems that
might need redesign or changes
» This typically involves observing users as they interact with the system for the first time.
» Continuous Integration
» Frequently incorporate new and changed code into their project code repository.
» This helps minimize the integration problems that result from multiple people making
incompatible changes to the same code base
» The more frequently we make these code commits, the smaller the amount of code that
needs to be changed to allow a new build (or version) of the software to compile
successfully

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 CI/ TDD/ ATDD

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Continuous Integration
» Source code control system: this is the software that
performs version control on all the files that represent the
product being developed.
» Build tools: The source code needs to be compiled before
tests can be run. Most integrated development environments
(IDEs) serve as a build tool to compile the code.
» Test tools: As part of the build process, unit tests are run to
ensure that the basic functionality operates as planned. Unit
test tools execute the small, atomic tests that are written in
these tools to check the code for unanticipated changes in
behaviour.
» Scheduler or trigger: Builds might be launched on a regular
schedule (such as every hour) or every time the system detects
a change to the source code.
» Notifications: If a build fails, the team needs to be notified so
they can correct the build as soon as possible. These
notifications maybe sent via e-mail or instant messaging.

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Continuous Integration - Benefits

The team receives an early warning of broken, conflicting, or incompatible code.

Integration problems are fixed as they occur, rather than as the release date approaches. This moves any
related changes down the cost of change curve and avoids last-minute work before releases.

The team receives immediate feedback on the system-wide impacts of the code they are writing.

This practice ensures frequent unit testing of the code, alerting the team to issues sooner rather than
later.

If a problem is found, the code can be reverted back to the last known bug-free state for testing, demo,
or release purposes.

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Continuous Integration - Disadvantages
» The setup time required to establish a build server machine and configure
the continuous
» integration software; this is typically done as an iteration 0 activity (before
the development work begins on the project)
» The cost of procuring a machine to act as the build server, since this is
usually a dedicated machine
» The time required to build a suite of automated, comprehensive tests that
run whenever code is checked in

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Test-Driven
Development
(TDD)
» The philosophy behind TDD is that tests should be
written before the code is written.
» Developers should first think about how the
functionality should be tested and then write tests
in a unit testing language (such as NUnit or JUnit)
before they actually begin developing the code.
» With TDD, developers begin a cycle of writing code
and running the tests until the code passes all the
tests. Then, if necessary, they clean up the design to
make it easier to understand and maintain without
changing the codes behaviour. This last process is
called “refactoring.”

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Acceptance Test-Driven Development (ATDD)
» Acceptance test-driven development (ATDD) moves the testing focus from
the code to the business requirement.
» With TDD, the tests are created before work starts on the code, and these
tests represent how the functionality is expected to behave at an
acceptance test level
» Typically, we capture these tests when we pull the user story from the
backlog and discuss its desired behavior with the business representatives.
» The acceptance tests maybe captured in a functional test framework, such
as “FIT” (Framework for Integrated Testing) or “FitNesse.”. The overall
process goes through the four stages of discuss, distill, develop, and demo,
as illustrated below.

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 Acceptance Test-Driven Development (ATDD)
» Discuss the requirements: During the planning meeting,
we ask the product owner or customer questions that are
designed to gather acceptance criteria.
» Distill tests in a framework-friendly format: In this next
phase, we get the tests ready to be entered into our
acceptance test tool. This usually involves structuring the
tests in a table format.
» Develop the code and hook up the tests: During
development, the tests are hooked up to the code and the
acceptance tests are run. Initially the tests fail because
they cannot find the necessary code. Once the code is
written and the tests are hooked to it, the tests validate the
code. They may again fail, so the process of writing code
and testing continues until the code passes the tests.
» Demo: The team does exploratory testing using the
automated acceptance testing scripts, and demos the
software.

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Thank You !

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History
Version Date Author Description

1.0-D01 2021-01-05 Hung Nguyen Van First initialization version

1.0-D02 2021-02-08 Hung Nguyen Van Fix review comments

1.0 2021-02-10 Hung Nguyen Van Baseline version

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