Measuring Value Delivered by Teams
When evaluating the performance of Agile teams, it is important to distinguish between the amount of work completed and the actual value delivered. This article addresses the misconception that more work completed automatically equates to more value delivered.
Exam Question
Team A has completed 20 “points” of work in the last month, while Team B has completed 16 “points” of work in the last month. Which one has delivered more value?
(choose the best answer)
A. Team A, since they have completed more work.
B. We cannot tell; work completed measures effort, not value.
Correct Answer
B. We cannot tell; work completed measures effort, not value.
Explanation
Correct Answer
B. We cannot tell; work completed measures effort, not value:
The number of points completed by a team measures the amount of effort expended, but it does not necessarily indicate the value delivered to customers or stakeholders. Value is determined by how well the completed work meets customer needs, improves user satisfaction, or achieves business goals.
Why the Other Option Is Less Relevant
A. Team A, since they have completed more work:
Completing more work does not automatically mean delivering more value. The work completed must be assessed based on its impact on customer satisfaction, business outcomes, and overall value delivered to the organization.
Understanding Value Delivery
- Customer Impact: Value is often measured by the positive impact on customers, such as improved satisfaction, increased usage, or solving key problems.
- Business Goals: Work that aligns with and advances business goals is typically considered more valuable.
- Efficiency and Effectiveness: Completing high-priority items efficiently and effectively contributes to delivering value.
EBM Framework Insights
- Current Value (CV): Focus on measuring the value delivered to customers and stakeholders, rather than just the effort expended.
- Unrealized Value (UV): Identify potential value that could be delivered by prioritizing work that addresses unmet needs.
- Ability to Innovate (A2I): Encourage teams to focus on innovative solutions that drive value, rather than just completing tasks.
- Time to Market (T2M): Reduce the time it takes to deliver valuable features to customers, enhancing the overall value delivered.
Relevance to the PAL-EBM Exam
Understanding the difference between effort and value is crucial for the PAL-EBM exam. This knowledge demonstrates the ability to focus on delivering real value through effective prioritization and alignment with customer and business needs.
Key Takeaways
- Work completed (points) measures effort, not value.
- Value is determined by the impact on customers and business goals.
- Assessing value requires considering customer satisfaction, business outcomes, and alignment with priorities.
- Effective Agile teams focus on delivering the most valuable work, not just completing tasks.
Conclusion
Measuring the value delivered by Agile teams requires more than just tracking the amount of work completed. By focusing on the impact of their work on customer satisfaction and business goals, teams can ensure they are delivering real value. For more information on preparing for the PAL-EBM exam, visit our Professional Agile Leadership PAL-EBM™ Exam Prep.
