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Tag: value

How do we determine value?

And how do we make sure we are delivering it?

In a previous blog I discussed the importance of understanding the value you are trying to add, and how you measure cost vs vale. How we measure value and ensure we are delivering a valuable return on investment is one of the ‘big’ questions at the moment, that never seems to go away.

Scott Colfer has equally blogged before on the complexity of measuring value when there is no profit to measure against. When working in the public sector it’s not an easy problem to solve. There is a lot of conversations about making sure we don’t waste public money, but how do we actually make sure public money is being spent in a valuable way?

A jar of coins
A jar of coins being spilt

The first principle of the Agile Manifesto is “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” But what is valuable?

At a kick off session this week, for a new project we’re shortly going to begin, a client said one of their hopes was that all code deployed would work first time; and someone else stated that they ‘didn’t want rework’. When we broke these thoughts down to understand where these fears were coming from, it was the need to add value and not waste money; which itself was coming from previous issues caused by a long time to deploy, and the cost to make changes.

There was equally the fear that by swapping out suppliers mid project we (as the new supplier) would want to redesign and rework everything to make it our own; which would slow down delivery and drive up cost even more.

There is obviously no value for anyone in doing that. The value comes by having a short feedback loop, co-designing and constantly testing, learning and iterating, working together in short weekly or fortnightly sprints, to get things delivered. Making sure there is little time as possible between designing something, to getting it tested and used by real users; ensuring it meets their needs as quickly as possible.

Through examining what has been delivered already against the user needs and the outcomes the organisation is looking to achieve; by identifying gaps and pain-points we reduce waste; and by prioritising the areas where improvements can be made we ensure that reworking only happens when there is actual value in doing so.

A parcel being delivered
Parcel delivery

At a talk this week I was asked how we prioritise the work that needs doing and ensure that we do deliver. The important thing is to deliver something, but ideally not just any old thing, we want to ideally be delivering the right thing. Sometimes we won’t know what that is, and it’s only by doing something that we can establish whether that was the right thing or not. But that’s why short feedback loops are important. Checking back regularly, iterating and testing frequently, allows you too recognise when there is value in carrying on vs. value in stoping and doing something different.

When I’m trying to decide where the value is, and where is the best place to start, I consider things like:

  1. Why are we doing this?
  2. Why are we doing it now?
  3. What happens if we don’t do this now?
  4. Who will this affect?
  5. How many people will it impact?
  6. How long could this take?
  7. Any indicative costs?
  8. Any key milestones/ deadlines?
  9. Any critical dependancies that could affect our ability to deliver?
  10. Will this help us deliver our strategy? Or is it a tactical fix?

Once we have started work, it’s important to agree measure of success (be they financial, reducing time, staffing numbers; or things like improved uptake or a better customer experience) and keep measuring what is being delivered against those targets.

At Difrent a key part of the value we add is about the people, not just the technology or processes; there is value in us working in the open, by being transparent; running lunch and learn sessions or talks; blogging or speaking at events etc. we can add wider value outside of a specific project or service.

A person presenting at a whitewall to a team
People listening to someone speaking/ sharing

When we are considering what adds value, the other thing it’s important to consider is the culture we are delivering in. Are there communities of practice in place already, any design patterns we should be adhering too? There is value in building in consistency, as this helps us ensure we are delivering quality.

There are many different ways to determine what adds value, and many different kinds of value, but the importance is by focusing on making positive improvements, and by constantly learning from mistakes and ensuring they don’t get repeated so no time is wasted and real value can be delivered.

Measuring cost vs. measuring value?

Discussing the differences between Product Management in the Private and Public sector.

There has always been a perceived difference in how Product Managers in the public and private sector work, what their priorities are and their key focuses.

Historically at its most simplistic the view has been that within the Public sector the Product Manager focuses on what user’s need. Whereas Product Managers in the private sector focus on what users want.

Interestingly as more organisations in the Private Sector adopt the user centric design principles championed by Government Digital services and public sector organisations the difference in the role between the Private and public sectors decreases. Within the public sector we do indeed focus on user’s needs, however we do have to consider their wants as well if we want to create services our users will enjoy using.

Equally while Product Managers in the Private Sector will focus more on want’s, as that is where their revenue is likely to be, and what will give them the edge in the market. But they will also consider need’s, because when developing a service for users, it’s important to understand whether users wants and needs are polar opposites to ensure your not setting your scope too small or your costs too high. As such, while this difference between need and want is possibly still the best way to separate the roles, they are not as different as they once were.

A simple task backlog

No matter what sector they work in, be that private sector or Public, Product Managers are still there to ‘represent’ the end user and their needs/wants, within the Public sector the Product Manager is more likely to work with a user researcher who will help them understand those needs, and there will be more of a focus on user research to ensure the users are properly understood and represented, but at their core the Product Manager is still there to ensure those needs are met in the best possible way.

They are also responsible for understanding the opportunities and gaps within the market place, looking for opportunities to fill a need that is missing; for developing their Product strategy and roadmap and setting the scope for their Product to meet the needs or target the gaps they have identified.

So, perhaps the other key difference between the Private and Public sector Product Managers, is cost revenue. Within the Private Sector, the Product Manager is responsible for ensuring the Product or Service they are developing will fit within the Business Model, they manage the profit and loss for their Products, and the development of the business development strategy. They will quantify the return on investment predominantly through revenue return. They will be examining the market place to understand what similar products are out there, and their costs to users to use; Once they have a rough idea on how much they can make they can determine their ROI is based on how much it will cost to develop vs. how much profit are they likely to make from users once the Product or service is live.

Within the Public sector there is not the same onus on cost revenue. Departments are funded by the treasury, very few agencies or bodies generate their own revenue, and while there are some, they are not looking to create a profit in the same way the private sector is.

Instead the return on investment we are considering in the Public sector is about value to the public purse. Is there value in spending public money on developing this product or service? We do this by examining how much is currently spent on running any existing services; how much is ‘lost’ through waste or inefficiencies; how much can be saved by introducing service improvements or a new service for users and how much will it likely cost to develop? If the savings out way the spend, then there is likely value in us using public money to develop this.

A dashboard showing user numbers

This approach to determining value is the difference between the public and private sector product managers, but also shows how similar the roles actually are. Product Managers, no matter what sector they are in, care about their users and developing products and services for them. They look to the market to understand opportunities; they work to develop their Product strategy and to quantify the available Return on Investment.

I think we need to put to bed this idea that the Private sector solely puts revenue over users, and that the Public sector doesn’t care about costs.  Both Private sector and Public sector Product Managers have a lot they can learn from each other, and we should be looking for more opportunities to join up and share our experiences and knowledge.

I believe both Private sector and Public sector Product Managers have a lot they can learn from each other, and we should be looking for more opportunities to join up and share our experiences and knowledge. I think we need to put to bed this idea that the Private sector solely puts revenue over users, and that the Public sector doesn’t care about costs.