Concepts
In the realm of Agile development, and specifically in the context of the Advanced Certified Scrum Product Owner (A-CSPO) certification, defining strategy and identifying purpose are essential skills. Being able to do so accurately will not only aid in the successful delivery of the product but also guide decisions and align the team’s efforts.
This article will discuss two common and effective approaches for achieving this: the Goals-Driven Approach and the Vision-Driven Approach.
Goals-Driven Approach
The Goals-Driven Approach involves defining a specific, time-bound, and measurable objective that reflects what you want to accomplish with your product. Goals are usually aligned with business objectives and customer needs.
A good goal could be, for instance, “Increase subscription renewals by 15% in Q1 2022,”. This goal clearly spells out what needs to be achieved, when it needs to be done, and provides a quantifiable measure of success.
Strategy, in the context of a Goals-Driven Approach, is an action plan to achieve set goals. It directs the scrum team’s energies towards defined activities that contribute to the set objective.
To effectively employ a Goals-Driven Approach:
- Define Your Goal: Come up with a specific, measurable, achievable, relevant, and time-bound (SMART) goal that aligns with your business objectives and customer needs.
- Formulate Your Strategy: This is your roadmap to achieving the set goal. It outlines the steps to be taken by your scrum team to realize your goal.
- Implement and Review: Execution of the strategy must be monitored to ensure alignment with the set goal. Regular assessments must be conducted to measure progress and make necessary adjustments.
Vision-Driven Approach
On the other hand, the Vision-Driven Approach to defining strategy and identifying purpose involves creating an inspiring image of the future that motivates stakeholders and guides actions.
A compelling vision could be, for instance, “To become the leading provider of intuitive and user-friendly software solutions for SMEs.” This vision is an aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future.
In this approach, strategy provides the high-level plan needed to achieve the vision. This method encourages creativity and invites a broader perspective, which can lead to innovative solutions.
To effectively employ a Vision-Driven Approach:
- Define Your Vision: Paint an inspiring and challenging image of the future. This works best when all stakeholders buy into it.
- Formulate Your Strategy: This is a high-level plan that outlines how the vision will be attained. It includes a set of actions that will drive the organization towards the vision.
- Implement and Review: The strategy is launched and regular check-ins are conducted to ensure progress towards the envisioned future.
In conclusion, both the Goals-Driven and Vision-Driven approaches have their unique strengths, and therefore, a blending of both approaches is often necessary depending on circumstances and the nature of the project. While the Goal-Driven Approach is great for short-term, specific initiatives, the Vision-Driven Approach is ideal for providing long-term direction and inspiring innovation. Careful consideration of the context and needs should guide the choice of approach as you work towards the successful delivery of your product.
Answer the Questions in Comment Section
True/False: In Agilism, the vision statement is a tool that helps to identify a product’s purpose.
• True
• False
Answer: True.
Explanation: The vision statement is a powerful mechanism to communicate product purpose. It outlines what the team wants to achieve with the product.
Which of the following can be used to identify or define strategy in an Agile environment?
• A) Feature prioritization
• B) Stakeholder interviews
• C) User Story Mapping
• D) All of the above
Answer: D) All of the above
Explanation: All of these approaches can offer insights into the purpose of a product and help define the product strategy.
True/False: In order to identify the purpose, the Product Owner must focus solely on meeting customer needs.
• True
• False
Answer: False.
Explanation: While customer needs are important, the Product Owner must also consider the wider business context, stakeholder interests, and market trends.
Which of these is not a step in identifying the purpose or defining the strategy?
• A) Conducting a stakeholder analysis
• B) Evaluating technological considerations
• C) Focusing only on competition
• D) Aligning the vision with organizational objectives
Answer: C) Focusing only on competition
Explanation: While competition is a factor, it’s not the only one. Simply focusing on competition can lead to a reactionary rather than a defined strategy.
True/False: A roadmapping exercise can be used as an approach to define the purpose or strategy.
• True
• False
Answer: True.
Explanation: A product roadmap helps articulate how the product will evolve over time. Thus it can add definition to the purpose or strategy.
True/False: “Order of implementation” is a key consideration while creating a strategy.
• True
• False
Answer: True.
Explanation: A strategic approach involves deciding not only on what features to implement but also in what order, thereby, sequencing is key to creating strategy.
Which of these is not a focus for identifying purpose or defining strategy?
• A) Defining market sectors
• B) Analyzing persona needs
• C) Determining team lunch menus
• D) Outlining outcome expectations
Answer: C) Determining team lunch menus
Explanation: Team lunch menus have nothing to do with defining a product’s purpose or its strategy.
True/False: For defining strategy, one approach can be the use of the MoSCoW method.
• True
• False
Answer: True
Explanation: The MoSCow method helps to prioritize what should be done now versus what can be done later. Hence, it is useful in strategy definition.
Which among these is an indicator that the purpose or strategy has been properly defined?
• A) Perceived team velocity
• B) Decreased story points
• C) Established product positioning
• D) Reduction in sprint lengths
Answer: C) Established product positioning
Explanation: A clear product positioning in the market is a good indicator that the purpose and strategy for the product are well defined.
True/False: The Kano model is used to identify the purpose in Agile projects.
• True
• False
Answer: False
Explanation: The Kano model is used for customer satisfaction and prioritization rather than for identifying product purpose or strategy.
Which of these strategy definition approaches helps identify product risk elements?
• A) SWOT Analysis
• B) Story Points
• C) Backlog grooming
• D) Sprint Review
Answer: A) SWOT Analysis
Explanation: SWOT Analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats, helps identify risk elements related to the product strategy.
Multiple select: Which of these techniques are used for defining strategy?
• A) Value Stream Mapping
• B) Lean Canvas
• C) Burn Down Charts
• D) Product Roadmaps
Answer: A) Value Stream Mapping, B) Lean Canvas, D) Product Roadmaps
Explanation: These are all techniques used for defining strategy. Burn Down Charts, on the other hand, are generally used for tracking work progress rather than strategy.
Great post! I think one of the best approaches to defining strategy is using SWOT analysis. What do you guys think?
Absolutely! SWOT analysis helps in pinpointing strengths and weaknesses effectively.
Thanks for the informative post! It really helped me understand the different approaches.
I prefer using OKRs over SWOT for defining strategy. They provide clear, measurable goals.
OKRs are wonderful for setting clear objectives, but they can sometimes feel too rigid.
Combining both OKRs and SWOT can cover both strategic and tactical needs.
Any thoughts on using vision boards to identify purpose?
Vision boards can be quite powerful for aligning the team towards a common goal.
Appreciate the post on A-CSPO strategies!
What about the Business Model Canvas? It gives a comprehensive view of the strategy.
Yes, the Business Model Canvas is excellent for giving a holistic view.
It’s great for visual thinkers who need to see all aspects in a single place.
I found mind mapping to be a creative way to brainstorm purposes.
Mind mapping definitely stimulates creative thinking and helps see connections.
Really valuable content. Thank you!