Concepts
An essential aspect of a Certified Scrum Product Owner’s (CSPO) responsibilities is understanding value from the perspective of different stakeholders. We will explore the concept of value from three different stakeholder perspectives: the business, the development team, and the end-users.
1. Value from the Business Perspective:
From a business perspective, value often refers to measurable outcomes that directly contribute to an organization’s bottom line and long-term goals. The business value is related to factors such as increased revenue, reduced costs, opening new markets, meeting regulatory requirements, or maintaining customer satisfaction.
For example, consider a business that wants to design an e-commerce application. The business identifies their primary objectives as increasing sales revenue by 10% and reducing cart abandonment rates by 15%. The value is then determined by how well the application can meet these objectives.
2. Value from the Development Team’s Perspective:
From the development team’s point of view, value can manifest in several forms. This can include working on impactful projects, receiving transparent and timely feedback, maintaining a sustainable pace of work, or having the opportunity to learn and grow professionally.
Using the e-commerce application as an example, a development team might find value in being able to use the latest tech stacks in building the application. Furthermore, they might find value in the feedback they receive about their work, enabling them to learn, evolve, and produce better results in future sprints. This sense of value is critical for maintaining the team’s morale, engagement, and productivity.
3. Value from the End Users’ Perspective:
End users, often customers or clients, generally view value in terms of how well a product or service meets their needs and expectations. They are typically looking at factors like functionality, usability, reliability, and overall user experience.
With our e-commerce application example, the end-users might find value in a simple, intuitive interface that makes shopping easy or a reliable system that ensures their transactions are secure. They might also value new features that personalize their shopping experience.
In conclusion, understanding value from different stakeholder perspectives is crucial in the role of a Certified Scrum Product Owner. By appreciating these varied views of value, a CSPO can better manage the product backlog, prioritize tasks, and align the project with the needs and expectations of all stakeholders. Indeed, this multi-faceted appreciation of value is at the heart of successful Agile product development.
| Stakeholder | Perception of Value |
|---|---|
| Business | Achieving stated revenue objectives, cost savings and strategic goals |
| Development Team | Opportunities for growth, feedback, and technical challenges |
| End Users | Functionality, usability, and overall user experience |
This dichotomy helps to underscore the need for CSPOs to maintain a holistic and varied understanding of what value means to different stakeholders, ensuring a balance between each group’s needs and the ultimate success of the product.
Answer the Questions in Comment Section
True or False: Customer satisfaction is important in determining value from the customer’s stakeholder group in Scrum.
Answer: True.
Explanation: The customer’s stakeholder group primarily focuses on the value in terms of how well the product meets their needs and expectations, which directly translates into customer satisfaction.
Who among the following stakeholders are not concerned with the financial return of value?
- A) Investors
- B) Customers
- C) Employees
- D) Shareholders
Answer: C) Employees
Explanation: While employees do care about the profitability of the business for job security, their primary concern is typically not the financial return on investment but the workplace environment, culture, and opportunities for growth and learning.
In Scrum, the Product Owner represents which stakeholder group?
- A) End-users
- B) Team Members
- C) Management
- D) Investors
Answer: A) End-users
Explanation: The Product Owner represents the needs of the end-users or customers and ensures their perspective is considered while defining the value of the product.
When considering value from the perspective of the scrum team members, which factor is NOT relevant?
- A) Profitability of the project
- B) Job satisfaction
- C) Learning opportunities
- D) Good team environment
Answer: A) Profitability of the project
Explanation: While profitability is important, it’s usually not the main concern for team members who are more focused on aspects like job satisfaction and growth opportunities.
True or False: End-users value how frequently product updates or new features are released.
Answer: True.
Explanation: From the perspective of end-users, the rate at which the product improves is an important part of the value it provides.
Value to stakeholders such as investors and shareholders is primarily driven by:
- A) Product Quality
- B) Job Satisfaction among Employees
- C) Return on Investment
- D) Collaboration
Answer: C) Return on Investment
Explanation: Investors and shareholders typically focus on the financial return on their investment when determining value.
True or False: The value to external stakeholders such as regulatory authorities mainly lies in the compliance of the product to necessary standards.
Answer: True.
Explanation: External stakeholders such as regulatory authorities focus on whether the product meets necessary standards and regulations.
True or False: For the scrum team, product value is measured by the successful completion of tasks.
Answer: False.
Explanation: While task completion is a part of the team’s work, the true value lies in delivering usable increments of the product that provide tangible benefits to end-users.
Which of the following does not contribute to the value from the perspective of a Product Owner?
- A) High return on investment
- B) User satisfaction
- C) Enhanced team collaboration
- D) Quick product updates
Answer: C) Enhanced team collaboration
Explanation: While team collaboration is important, it’s not the primary focus of the Product Owner, who is more concerned about user satisfaction and return on investment.
True or False: Stakeholders in Scrum could draw different definitions of ‘value.’
Answer: True.
Explanation: What is considered valuable can vary among stakeholder groups. For example, end-users may value functionality, while investors might value return on investment.
When considering value from the perspective of the sales team, which is most important?
- A) The technical features of the product.
- B) The profitability of the product.
- C) The cost of the product.
- D) The marketability of the product.
Answer: D) The marketability of the product.
Explanation: The sales teams primarily value how well a product can be sold, which depends on its demand, features, and competitive advantages.
In Certified Scrum Product Owner (CSPO), does ‘value’ consider both tangible and intangible benefits?
- A) Yes
- B) No
Answer: A) Yes
Explanation: The Scrum framework considers both tangible (profits, cost-saving etc.) and intangible benefits (customer satisfaction, employee morale etc.) in its concept of value.
I believe the value from a customer’s perspective in a CSPO role is seeing a product that meets their needs and is delivered on time.
From the development team’s viewpoint, value in the CSPO role comes from having clear and prioritized user stories.
Thanks for the insightful post! Really helped me understand different stakeholder perspectives.
From a business standpoint, value in the CSPO role entails maximizing ROI through effective backlog management.
Great post! I now have a better understanding of the CSPO’s multi-faceted role.
An interesting angle is how value is perceived by regulatory bodies – ensuring compliance and reducing risks can be a hidden yet crucial aspect of the CSPO’s work.
For project managers, value is in having a clear roadmap and well-defined milestones that the CSPO provides.
Well-articulated post!