Balance development of deliverable units and risk reduction efforts by incorporating both value producing and risk reducing work into the backlog in order to maximize the total value proposition over time.

At the core of every successful Agile project is the fine balance between developing deliverable units and reducing associated risks. A PMI Agile Certified Practitioner (PMI-ACP) will need to understand this delicate equilibrium, and how to maintain it, particularly by leveraging the backlog. For optimal results, project teams should incorporate both value-producing and risk-reducing work into the backlog to maximize the total value proposition over time. The following elaborates on these principles and gives practical examples and comparisons to clarify them.

I. Backlog Management

The Agile backlog offers a powerful tool for managing the progress and risk mitigation strategies in a project. Prioritizing the tasks in the backlog can help determine the order of implementation based on their value creation and risk reduction potential.

For instance, tasks that create the most value for the project while carrying the least risk are often prioritized for immediate implementation. On the other hand, tasks that carry more substantial risks but still contribute value are placed further down the backlog. Mitigating their risks before execution will ensure that they bring the most worth when their turn comes for implementation.

II. Balancing Value Creation and Risk Reduction

Striking the right balance between value creation and risk mitigation is critical to achieving ultimate project success. Maximizing value creation often involves focusing on deliverable units that contribute most to the project’s overall goals. This, however, does not mean neglecting work that provides less immediate value but crucial for managing project risks.

For example, consider a scenario where Task A has a high potential for value creation, but also carries a high level of risk. Conversely, Task B may command less immediate value but presents a significant opportunity for risk reduction. In such a case, it may be more beneficial to the project to prioritize Task B ahead of Task A on the backlog. By mitigating the potent risks, Task B provides a safe environment for the realization of Task A’s full potential, thus, overall optimized value for the project.

III. Maximizing Total Value

The ultimate goal of incorporating both value creation and risk reduction strategies into the project backlog is to maximize the total value proposition over time. This balance is the true test of an effective PMI-ACP and is of critical importance in Agile project management.

Here is a basic structure of a backlog demonstrating the strategy:

In this example, even though Task A has a high probable value, its associated risks are also high. Task B, on the other hand, has low risks and is prioritized first because it sets a risk-free foundation for other tasks. Task C, having balanced value and risk, is moderately prioritized. Once Task B is implemented, risk mitigation for Task A becomes achievable, placing it next on the priority list.

Enhancing the total value proposition over time involves carefully considering each task’s value potential against its associated risks. By integrating each task’s momentum, the project team can proactively manage both deliverable units and risk reduction efforts, becoming true masters of the agile backlog.

IV. Conclusion

As a PMI-ACP, balancing the development of deliverable units and risk reduction efforts is crucial. Incorporating both value-producing and risk-reducing elements into the backlog enhances the overall value proposition over time. This strategy yields better project results, as they consider the dual aspects of immediate value creation and long-term risk reduction. By efficiently applying these principles, you can manage your backlog with an effective balance that boosts project success.