Agile & Scrum in Depth - Module 3: Product Backlog management and Release Backlog - Maximize Value | Ignacio Paz | Skillshare

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Agile & Scrum in Depth - Module 3: Product Backlog management and Release Backlog - Maximize Value

teacher avatar Ignacio Paz, Agile Coach and trainer, Professor

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

11 Lessons (47m)
    • 1. Introduction

      2:18
    • 2. Build the Product Backlog

      2:37
    • 3. Estimating the Value of the Product

      9:42
    • 4. Estimating the Effort of the Product Backlog

      4:29
    • 5. Ordering the Product Backlog by Return of Investment

      2:35
    • 6. Slice stories to maximize their value

      3:44
    • 7. Planning the Release Backlog

      1:23
    • 8. Create the Release Backlog

      6:53
    • 9. Maximize the Value of your Product Backlog

      11:18
    • 10. Next class

      0:38
    • 11. Thank you and Final thoughts

      0:54
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About This Class

Do you have an idea or need to manage a project? Do you work with stakeholders? Do you want to get maximum benefit from all the ideas for the product?

This course is about how to maximize the greatness of your product or idea.

We will estimate the value of product features with an agile technique considering the input of the stakeholders, we will make a rough estimate of the effort to build it and organize the milestones and goals of the project to maximize the value.

We will also see numbers to support your decisions and align the expectations of the stakeholders.

During the workshop, you can use the sample product vision I give you or just use your own product so you can ask real world questions.

There is no good tool available for visualize the data as I really want to show you, so I will provide you with a template that you can re-use for your own projects.

When I learned this from an important Agile Guru, this changed my mindset forever. I apply this to everything I do at work or life. It is not that I go always through all the process but at least I think of it in my mind to evaluate anything. I doing this course with the hope that can make the same impact on you.

Join me in this course and we will go through a lot of great knowledge that are not available anywhere else.

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Requirements: It is recommended but not mandatory to have some knowledge of Agile and Scrum. I recommend to take these classes first: Understanding Agile and Scrum 

If you find this interesting, start this class now.

What you will learn?

  • How to build a Product Backlog
  • How to estimate the value with the stakeholders
  • How to estimate a rough effort
  • How to prioritize
  • Slicing storied to get the most of their value
  • 80/20 rule
  • How to maximize the value
  • Why to maximize the value
  • How to create a release backlog

What you will you create?

In this class you will:

  • Create a Product Backlog
  • Estimate the value
  • Estimate the effort and velocity
  • Order items to maximize the value
  • Slice stories to get most of their value with less
  • Create a Release Backlog

This course is specifically for:

  • People that want to understand the meaning of maximizing the value and how to do it.
  • Product Owners, Project Managers, Scrum master, Entrepreneurs.
  • People looking to learn more about Scrum or how to implement scrum.
  • People to learn techniques and practical approaches for Project Management and Scrum
  • Students who completed the class Understanding Agile and Scrum or User Story Mapping Workshop 

This course is not suitable for:

  •  People looking for theory.

Why taking the class? What you will gain?

  • Understand how to take the best of your ideas and projects in an early stage.
  • Get more with less.
  • Know how prioritize the product backlog.
  • A knowledge and mindset that you can apply at work and any personal initiative.

Congratulations! You read all the class description! What are you waiting? Start this class now.

If you have any questions, please start a discussion in the course and do not hesitate to leave me a question.

About me

Hi my name is Ignacio. https://www.linkedin.com/in/ignaciopaz/

My main goal is to help you with new knowledge that you can apply at work and be a successful and professional leader.

I led, coached, led and managed Agile projects and scrum teams since 2005 for customers from all over the world.

During my career of intensive learning I got many advanced scrum certifications including Certified Scrum Professional Scrum Master, Certified Professional Scrum Product Owner and Certified Agile Leadership.

I worked 15 years as a Professor for Agile Methodologies and Systems design.

I love to teach Agile and Scrum and I designed a lot of hours of training that I am bringing online. I prefer to teach with games and activities that can simulate the real world.

I trained hundreds of students in Agile that became top professionals in the industry. 
Teaching what I learned in my 20 years of experience allows the students to gain realistic learning that they can apply at work.

Meet Your Teacher

Teacher Profile Image

Ignacio Paz

Agile Coach and trainer, Professor

Teacher

Hello, I'm Ignacio 

https://www.linkedin.com/in/ignaciopaz/

https://twitter.com/nachopaz

I led, coached and managed Agile projects and scrum teams since 2005 for customers all over the world.

During my career of intensive learning I got many scrum certifications including Certified Scrum Professional Scrum Master, Professional Product Owner and Certified Agile Leadership which are very difficult to achieve.

I worked 15 years as a professor for Agile Methodologies and Systems design in one of the most important technological universities in Argentina.

I love to teach Agile and Scrum and I designed a lot of hours of training that I am bringing online. I prefer to teach with games and activities that can simulate the real world.

My... See full profile

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Transcripts

1. Introduction: Hi. Do you have an idea or do you work with stakeholder? Do you want to get the maximum benefit from all the idea for the problem scores? It's about how to maximize the greatness off your problem or idea. We will estimate the value of the product features with a natural technique considered in the input off the stakeholders. We will make a rough estimate off the effort to build it and organized milestones and goals to maximize the value during the war shop you can use to sample Prohibition or use your own problem. There's no good tool available to visualize the data. Us I really want to show you. So I will provide you with templates that you can re use for your own projects. When I learned days from an important actually grew that I was working with, this changed my mindset forever. I apply this to every since I do at work for life. Hi, my name is in NASA. Abbas. I let coached and managed projects and scrum teams for customers like MTBE Rider, eHarmony Blues Version one, which is one of the top fighter project management to and many other scenes. 2005 all over the world. During my career, off intensive learning and practice, I get many above certifications, including certified scram professionals from Master Professional Problem owner and certified Much our leadership. 15 years, Professor for agile methodologies Consistent science teaching What I learned in my 20 years of experience loves the students to gain practical. Released it, learning the day can apply at work. Join me in this course and we will go through a lot of great knowledge that are not available anywhere else. What, are you waiting scores now? 2. Build the Product Backlog: building the product backlog. We will build the product bag. Look for a problem with the follow ambition. Basically, we want to build a grip shop to sell shoes, but the customers will have the option to customize their shoes as they like. Don't worry too much. Just let your imagination go askew. Like if you're running a session to build the product backlog, it is good to start with a brainstorming on else. Oh, set the time books to define some personas after that is good to let all the attendees write stories for the product. Um, put them in a wall. Always one story or concept for sticky note. Do not ride multiple items in one sticky note. This activity will give us a wall with a flat back look. So please, based on our vision, write stories in sticky notes off. What do you think this product should be able to do and put them in a wall? Or use the link provided in the video or project description with a template where you can write all the problem back? Look, attempts that you can imagine for this product, please use only the product bag. Low column I'll give you some examples. For instance, search product. We want simple actions that are easy to read from anywhere. We don't want a document in a sticky note. Those ideas or details can be captured in smaller stories. Not is that we are not using the classic user story template here. You can use it if you like, but we are not getting into the detail yet. We can do that later when we know the priorities. For instance, we can continue with BJU product least view product details at the shopping cart. Customized product. If we get stuck, we can take a look at some of the user stories and think of related stories. Foreign stands for you. Provoke details. I can think off Beaupre Put a reality. Suggest similar products, view user reviews and for such products. I can also think off advanced search products, So basically, the product backlog is the wish. List off all the things that we desire for the product. If you have your own product, you can do this with your vision as well. So please stop the video in continue when you have all these stories for your product backlog 3. Estimating the Value of the Product: Determining the value with many stakeholders. The first thing that we want to do is to go to the product backlog, release backlog and plate, go to File, Make a copy of, by the way, you need a Google account for this, you need to use your own Google account and be signed. We write the name that we want here, for instance, unique shoes, okay? And we are ready to work. So now in the Product Backlog column, you can place or write all the product backlog items that you thought for this product. In my case, this is my list of product backlog items. So I'm not trying to write a full list of everything that this protocol have. It sets an example. And hopefully you came up with many more ideas and many more items. And that's great. So now we will like to know what is the value of these items. So far this is a wish list, but we have no idea. So to determine the value, yeah, well, that's very difficult actually. And there are a lot of techniques, none of them is really accurate. You can imagine that estimating the effort, time bond, whatever, it's difficult, well, estimating the value is much more difficult. But we have some techniques that we can use. For instance, we can work with the stakeholders. Here we have a list of stakeholders and wicking war with them to see what are their interest, what they think are the most important items to work on or to release first. So to do that, in this case, we will have a few stakeholders. When is the owner of the company? Designers, shoe designer, clothes designers, the shoemaker. There is someone from marketing and there is a seller, someone that takes care of the customers face-to-face. So we can ask the people what are the most important things. But we can use a dot blotting technique. But in this case, we want to make your variation of the DOD voting on weekend, call it coin investment. Every stakeholder will have ten coins to invest on the features they want to have first, this coins are very expensive, so you'd better invest well, with this, we want them to feel the responsibility of how the money will be spent on the product. Building each of these items is very expensive and requires effort and time. So they can imagine that this is real money that they are investing in each item. So they have to think very well on how they invest their coins. Every stakeholder will have ten coins that they can distribute in the items they want as they like. In other words, this is like if you want to buy food, cloud, a bicycle, a new laptop, new furniture. This mode, you only can spend $200. What good you by first. For instance, the owner will spend one coin, enlists products. You can see the spreadsheet is validating how many coins they are spending on the rest of his coins will look like this. So for him, We see that lease products is important. Bu product details is important. Customized product is very important as he spend two coins while he spent only one coin in the other items. If he tried to spend more than ten coins, the spreadsheet, we'll validate this. So at this point, he's done with his ten coins. Of course, all the stakeholders can both at the same time. For instance, marketing, marketing might vote in a way that, yeah, customize the product is the most important thing. Marketing is willing to spend the three coins on the customized product. And marketing just distribute other coins in other items. And the shoemaker will distribute his coins in this way. So you can see that different stakeholders might have different interests. At least they all are very interested in the customized product. The shoemaker likes to customize. So he's interested in this item too. But they think different on other items. For instance, multiple payment methods. Only the owner is interested while the shoemaker probably doesn't even think of that, because he likes to make shoes not to sell. And the priorities for marketing are clearly different. So the designer is prolly interested in this items and distribute one coin for each of these items. And now he has a total of ten coins. Oh, the validation says that one coin is missing for the shoemaker. And he would like to put that coin in the product catalog. He's proud of the shoes, so he will like a great product catalog. And finally, the seller. The seller is the person that knows the customers, interact with customers, rested customer. So the seller knows the customers very well. The seller knows what they want, what they expect. The seller will think that these items are important and distribute the coins in this way. The value of each item is the sum of the coins that were invested in it. So with this, we have a reference of the value of each item that is useful when you have many stakeholders. But you have to be careful with this because this is not real business value. This is more a reference of how important are these product backlog items for the stakeholders. The product owner might want to compare these with all their analysis and sources. Like market analysis, real users, potential users. But this is a good reference to know what the stakeholders are expecting and making this exercise will show unmake miscible. What is the opinion of everybody, what everybody thinks, especially when the stakeholders have very different opinions and interests. So we will avoid endless and pointless discussions and help them to agree foster. Many times the stakeholders might have a previous analysis with quantitative and qualitative data and very good arguments on why the features might be very important or not very much. So now it will be good to allow conversations, especially about the items with the highest value and get more details about them. For instance, the customized product is very valuable, so it will be good to know why and what they expect from it. The product owner might also ask why they don't see value in South been like users review. When we see user's review, photo gallery signing with Google with value 0, it doesn't mean that they have value. They don't have value now compared to other things like shopping cart or view product details that have a lot of value in the short term, things like photo gallery or user's review might have a lot of value sometime in the future. Probably after we receive some feedback from users and customers. But not right now. We cannot do everything at once. So now we only want to focus on the most important things. Finally, product owner will be responsible for these values and the success of the product. So it is not a good idea to blindly trust the stakeholders opinions, but instead, validate the goal of the product owner is to maximize the value. So he or she will have the last word on what the most realistic value of the items are and decide what to build first. And at the same time, covering the stakeholder's expectations. The reality is that some product owners do not estimate the value. They just follow their intuition. On the other hand, many managers complain of the estimations of the development teams. But if you ask them what is the business value in numbers of an item, they cannot tell you. They just don't estimate it. So I personally think that is good to put a number in the value that you expect from each item. Not knowing the value is much more harmful than not know in the effort. Please now go back to your product backlog items and simulate the vote Dean of the stakeholders to come up with a value for each product backlog item. 4. Estimating the Effort of the Product Backlog: estimate in the effort. Now that we have a reference off the potential value off this product backtalk items, we can estimate the air force that is required to build them. First, we will sort of the product bag look items according to the value. At this point, we don't need inaccurate estimation and we don't want to do at the rue analysis either. But we will like a ballpark estimation, an idea of what is the size off each of this items and how much effort we need to build them. The development team will estimated each of this product backlog items. But of course estimating this items is not easy as there is not much information to do these, The development team can use the planning poker technique and classify each of this. I attempts into one of three categories if they are small, if they are medium or if they are large. For this, the development team will need the product owner to explain what it suspected from each of these items and what is the scope? The estimation for the items on the top will be more precise that the estimations off the items off the bottom because the items off the bottom do not have much value, the development team will not spend so much time in providing an accurate estimation. At the same time, the items on the top will contain more details and information. So, for instance, when the development team look at the first item customized product, they think that this is a medium when they look at BJU product details, they think that this is simpler than customized product. And they say it's a small such products is a small to list product is a small, too shopping card, and customer registration are small, too. But she meant, and user profile are also medium. They will require almost the same time to develop as the customized product under continue with all the items asking questions to the product owner to clarify. To continue, the development team can assume that an item off size small requires, for instance, one story point off effort. So now the question is how many times bigger is an item off size M compared to an item offside? Small under Development team says Well shipment compared to search product is three times bigger, so we can say that medium corresponds to three story points on the last question is, how many small items can I've Hield in the same time that I've Hield, large item on the development team compares multiple ship methods with some off the small items on. They say that large will be equal to five story points. Not is that we are using a relative estimation technique. So what 13 or five story points mean for this team called means something completely different for another team. This estimation that's not give you any clue on how much time you need to build each of this. I attempts, at least for now. The points are only telling you that customized product requires three times the effort that you need to build view product details and the pick up of the store required five times the effort that you need to build view product details or search products. Now this estimations might not be good enough for Sprint planning. The development team on the product owner might need to go the refinement on use planning poker with actual numbers to that remind a more accurate estimation. No place go through your product back. Look items unsaid the effort that you think it's more appropriate than, said the points that you would like to use for each T shirt size. 5. Ordering the Product Backlog by Return of Investment: prioritization. Now that we have an estimated value on estimated effort for each problem back look item. We can calculate the relationship between the value on the effort that you have to spend to build item. The value versus effort is like knowing the value for money. What do I get for my money? For instance, Search product has a value of three and requires only one point off effort. So that's why the value effort is three. On the other side, Shipman has the same value but requires three times the effort. So the relationship value effort is only one. What will you do first? That means that building search product is a quick wing. I get much more value for less money or less effort. The product owner might use the value per effort us a. Reference off how to order the product backlog and prioritization. So let's order the product backlog items by a descending value effort. So now the product backlog is sorted by the relationship between the value on the effort. This doesn't mean that this will be the only varietal or formula that the product owner will use to sort the problem bag. Look It can be a reference, but the problem owner might take other decisions, according TOA. Other variables, priorities or information. The relationship between the value on the effort is calculated. Assad division off the value by the story points. The goal off the product owner is to maximize the value off the product in age duration. One way to do that is to do first the things that are high, valuable, uneasy to do Digicel so related with the concept off, return off investment. As you can see, the product backlog is ordered in a way that the items on the top have a lot of value but require very little effort or are small on. The items on the bottom. Have very little or no value and require a lot of effort. This really help us to maximize the value by building the items on the top. Please apply the same steps in your spreadsheets 6. Slice stories to maximize their value: slicing big stories to maximize their value. So now the items in our product backlog have value. They have an estimated effort in point. Have the right here between the value and the effort, and we have our product bag look sorted by the value versus effort. This means that we are prioritising things that are very valuable on very keep. Now, when we look at this again, we captain notice that the customized product is very valuable but cost a lot to do so this has to be suspicious for us. We need to see if part off this value can be done with less than three points. If we think off the Pareto rule, we can probably do 80% off the value with just 20% off the effort. So we have to pay special attention to items that have a lot of value but seems to be very big. They must be an epic, and wishes lies them into smaller items. So when the product owner goes backs to their stakeholders and ask more information about customized product to know what customized product really ease, they say that they go like to customize the color the laces off the shoes. The shape off the shoes on may be more things in the future. So now the brother owner has a good reason to split the customized product item into three stories, and the brother backlog will now look like this so the product owner can ask the stakeholders how they go. Redistribute the coins that are already in customized product epic into the other user stories. Customized brother color customers, product laces and customized product shape. So when we do these, everybody read distributed the coins into customize color, which seems to be very important right now, except for marketing that put one of the coins into customized product shape. So now the product owner can go back to the development team and asked to re estimate these brother bag look items and the development in says that each of them are off size small. For practical reasons, we can just delete this row. So now we divided the customized product epic into three stories and one of them customised brother Color Haas, most off the value. But we can do it with less effort. Let's sort again the product bag look, items by the value versus effort. So now we can see that customized brother color is on the top with a value off eight on a value E Ford relationship off eight, while customer product shape is done here with a value of one and the value effort off one . So the idea off slicing or refining big stories that have a lot of value is to get most off their value with just doing a small part off it. As you can see, the product backlog is ordered in a way that the items on the top have a lot of value but require very little effort or are small on. The items on the bottom have very little or no value and require a lot of effort. This really help us to maximize the value by building the items on the top. Please apply the same steps in your spreadsheets 7. Planning the Release Backlog: what is their released backlog? Release planning? It's another method to forecasts one certain gold can be reaching or planning what to expect in the upcoming releases. Once the brother backlog items are ordered by priority on their estimated in size, you can think off how they will be delivered in the epicurean sprint. You need to know or estimate de velocity. The velocity is the amount of work that the team is expected to do. Imagesprint, for instance, if the team thinks that they can go eight points per sprint, the problem owner can put stories together that some up to eight points and average for each sprint to build verities backlog. This can be useful for the product owner to manage expectations with the stakeholders. See how is the best way to put product back, look items together in different releases and show a road map to the stakeholders towards a vision or goal. It is important that the stakeholders don't take this as a contract. This is just a draft. It is not to trust. We expect unexpected changes on it is better to be able to adapt, don't have in a strict plan, therefore, is better to just plan short horizons off. Just a few moans 8. Create the Release Backlog: release backlog Now that we have our product bag log sorted in a way to maximize the value by doing the most valuable things first that are easy to do. We will build our release back low. So first we will ask the development team how many product backlog items off size, one or or size small they can do in a sprint off. One week after a discussion, the development team says that they can do up to six pro tobacco items off size, small on. Therefore, dyspeptic velocity will be six. Velocity is the number off point that the team can do in average in its strength off course . Knowing the velocity at the beginning of the project is impossible. The velocity is only visible after working a few springs unseen the performance. But with a simple technique. The development team can do their best guess. Knowing that we might be able to do up to six points for Sprint, we will write in this column the number of Sprint in which we plan to do each product backlog item. For instance, the items on the top have one point off effort so we can add up to six of them into the first sprint for the second sprint. I cannot customize products shape shipment, and now user profile will exceed the six point because it will go up to seven points in Spring two. We could take a risk assuming that Velocity six is the reference. But in this case, we have filter by category and shipment tracking that both have one point and also have the same value effort relationship as they user profile. Because in spring to Shipman is consider, I will prefer to include shipment tracking and feel their bike integrity. Now, Spring two has six points off effort now for Spring three. Our will, our user profile on the following items. All of them have three points off effort on eso, the same value that means that the rate your value effort is the same. And because in this sprint we will are the user profile. Maybe it's good to our edit user profile, so a did user profile will also be in spring three. I probably can use payment and shipment details for the spring number for UNM multiple payment methods and manage brother catalog for Spring five. So far, I've been Ardan, brother Buckler Items to Esperance just like a chunk off stories to do that is not the idea . Off course, the product owners should focus on what is the goal off each sprint on put stories of product back look items that makes sense to go together toward the fine spring goal. But because this is an example, we will just focus on maximizing the value. If you want to know more about how to organize the releases, your business goal, I recommend you to take a look toe mind warship off user story mapping, where you will see how to the find priorities with another approach and to find the potential releases. So for Spring six, I could pick up the store and I cannot add much more because I already have five points. I could add customized brother places that have one point off effort, but it has no value at all. So why risk in the sprint without the more points? Maybe I can just keep it like this. So for spring seven, I take the same consideration. I just keep signing with Facebook. With only five points for Spain AIDS, I can add customer signing and send us a gift for spring nine. Maybe I can use user reviews and suggest similar products and move customized brother laces below them to are they to sprint 10. And for the following spring I will only add one story for each that it. Now we have our released backlog, which is basically a draft off how the following sprint will be like and which items we might be the Libre in in each of the common sprint. In this case, we did it with all the bag look, but you can do it. Just consider in some business goal. The released backlog is a big draft, so it's not convenient to think of very long timeframes, Probably just a few months. The first prints are likely to be done in that way, as described here, but the springs are planned too far in the future are very likely to change. At this point, we will be receiving a lot of feedback from customers from the business, and there will be a lot of changes in the market. So by the time we plan some off this prince, we will probably take very different decisions on what to build and which attempts to have also the details off the product backlog items that are not in the top will be more clear as soon as we progress and do more refinement. At this point, we might have information about the items on the top, but not very much on the rest of the items. The release backlog is just a draft and it should not be considered us a promise or us a contract. It might be good to use it to set some expectations and plan together their releases with the stakeholders, but they must understand that this is not the reality is just a forecast. So if you use their release sparked, look, please be sure to not create false expectations. The release bag log itself so useful for the product owner to plan future goals and potential release dates. It is also helpful to review it during the spring planning or refinement so the development team can see the big picture and know what will be expected from them. Finally, remember that the idea in agile is not to pray. Define a perfect plan on the contrary, to expect the unexpected and adopt, we expect to learn and adapt on the way much more than having a defined plan. That is why we only plan and commit to short sprints. Please. Now go back to your spreadsheet on create your own release bag. Look, decide which is your velocity and assigned a number of print for each brother back. Look, item. 9. Maximize the Value of your Product Backlog: Maximizing the value. Welcome back. Now we have our release backlog with the items that we plan to do in each sprint with actually is just a draft and with the most valuable and convenient things to do on the top of the backlog. And in the first sprint, we do that to provide early value and the first releases. At this point, it must be clear for you that the value is somehow maximized with this approach. But let me show you something. We will select all the Product Backlog Items, including their sprint column. Until the last Product Backlog Items, please do not select the totals, just the last product backlog item. You can do the same in your spreadsheet with your product backlog items. So now we will copy and we will go to this tab, accused value. Now that we are in this accumulated tab or sheet, we will go to the third row. Let says the first cell below the Product Backlog title. And we will do right-click and select Paste Special Paste Values only. And that's it. Let me explain you this new columns that we have here. So accumulated value. It is the value that we accumulate while finishing each of these Product Backlog Items. For instance, in the second column, 12 is the sum of eight on for, while 15 is the sum of eight for E13, 18 is the sum of aid for 33, and so on. So you can see at the end we have 50, which is the sum of all the values of our product backlog items. The last items do not sum any value because their value is just 0, at least right now compared to the other items. So we can see the total value of the product backlog here, which is 50. This column is the accumulated effort. So it means the effort that we spend when we finish each of these Product Backlog Items. For instance, this row says too, because it's the sum of 11, this two rows, this one is three because it's the sum of these three rows. This one is four because it's the sum of these four rows and so on. So the total effort to complete all the Product Backlog Items in this product backlog is 73. If we want to do all the Product Backlog Items, we need an effort of 73. Again, we have the total points for this product backlog up here. This column is the percentage of the accumulated value. Basically, we calculate this as a division of the accumulated value so far by the total value of the product backlog. That is why 15 divided 50 is the 30% of the total value of the product backlog. When we are in this line, it means that we completed a 100% of the value of the product backlog, which is 50. Around here, it means that we completed a value of 35, which means as 70% of the value of the total product backlog. You can do that by dividing 35 by 50. This column percentage of accumulated effort is similar by taking into consideration the accumulated effort versus the total effort of the product backlog. So for instance, for this line, it means that at this point, by completing all this Product Backlog Items, we spent a total effort of 7, which divided by 73. It means that we have spent 9.59% of the total effort that this product backlog required. So when we go at the end to the last product backlog item, we see that to complete the last product backlog item, of course, we need the 100% of the total estimated effort, which is 73. So what is the meaning of this? What do we want to see here? What do I want to show you? Well, I want to show you how the value of this product backlog was maximized using this technique. And you can repeat this following all the steps with any project, any product backlog items, or just drawing random numbers as you like. But following these steps and you will come up with similar results. So what we can see here is that when we complete sprint one, we achieved or completed or gained 48% of the total value of the product backlog with just spending 80% of the total effort required for the project. When we end the second sprint, we will be achieving 60% of the total value of the product backlog. We will be spending just 16% of the total estimated effort. Again, when we completed the third sprint, we will get 70% of the total value with just spending 24% of the total effort. And by the end of the fourth sprint, we will have about 78% of the value of this product backlog. We just spend in 30% of the total effort. So this means that by releasing at any of these sprints, if that makes sense, you will not get a product with all the features in the product backlog, but you will get a higher valuable product. A product that at this point, you spent very little effort, but contains the most valuable unimportant things. So when we say to maximize the value, this is the kind of results that we are expecting. It means to get a lot of value very early with just spending very little effort. The last column is the division of the percentage of accumulated value by the percentage of accumulated effort. This is somehow similar to the internal rate of return, but in a very simplified way. So this means the percentage of the value that I get versus the percentage of the effort that I invested. So you can see that in the first sprint, this rate is very high. The effort and the value are relative estimations, but they are very different and not comparable. I cannot compare them directly one to another. At the end of sprint one, I get L almost 600% of return from the invested effort. At the end of the second sprint, I get 365% value from the invested effort. At this point, the return of building this item is very low, so it probably not very convenient to think of building there right now. Maybe in the future, these become very important and they get a lot of more value. When we reestimate the value, we will reestimate the value in every sprint or very frequently with the stakeholders to see how the value of future product backlog items change. Of course, as soon as we move forward with many sprints, we will have a lot of new product backlog items. So what you can do to meet regularly with the stakeholders to reestimate the value of the Product Backlog Items. For instance, if you emit after a sprint to you aspect that all this product backlog items will be done. So you can focus on all these Product Backlog Items and many new that will be added to the product backlog. And we estimate all the value from 0 and repeat this process. If we think of the Pareto rule, we can expect that about 80% of the value of each product backlog, item and L, so 80% of the value from the whole product backlog can be done with just 20% of the effort. In this case, our estimations do not give us 20%, but it's quite close. It is telling us that we can get 78% of the total value with just 32% of the total effort. So when you see a product backlog, please think of that way and find the hidden value early. So please take a look at individual product backlog items. For instance, shipment that is not small but has a lot of value. And if we look inside this product backlog item, we could probably split it in smaller Product Backlog Items and probably get the 80% of these three points of value with 20% or a minimal fraction of these three points of effort. Maybe with 1, we get to points of value the same width, something like peek up at the store, which is large. That means that it required five points. So it's a big story and the value three. So maybes we split this one, we can get a lot of this value with maybe one or two points. So this results are very powerful. And if you show them to a stakeholder or a manager, or even to the development team. They will have a better understanding of what they are doing and how they are maximizing the value. You will also have a lot of quantitative arguments to justify your decisions. Maybe to stakeholders. They can understand why might be good to release after the first sprint or the second sprint and why we are working in this way, why they are estimating the value and what they will get in return. These numbers will make transparent how we are investing in the project and what we expect to get. Finally, if you go to the last tab of the spreadsheet chart value effort, you will see this chart on how the obtained value evolves during the sprint of their release bug look compared to the invested effort in every sprint. So here you can clearly see how in the first sprint we can get most of the value of the product. Please now go back to your spreadsheet and apply these steps to your project. You can repeat these steps with any project, any Product Backlog Items, or just draw random numbers to devalue, must follow in the steps and you will get pretty similar results. Just make the experiment yourself and please share your release backlog. 10. Next class: If you enjoyed this class, you can invite a friend unused your referral code to take the advantage of referring a friend. Now it's time to continue with your next class. You can continue with Scrum implementation to see a simulation of a Scrum team working with the best practices. Or please feel free to take a look at my other classes in my profile, I have a great day and see you in the next class. 11. Thank you and Final thoughts: congratulations. Before I go any further, I want to say again, Congratulations for making your way through the cars. I know you will get great body from my main goal is to help you with the knowledge that you can apply at work become a successful, unprofessional leader. If you have any questions or if you think that something was Mason, please let me know so I can guide you in the right direction or include the topic in discourse or pewter curses. I hope that you enjoy the skirts on. You can recommend it to others. If you like this course, please don't forget to leave a review. You will help me to spread my word. Support me to bring more courses and you will have other people to take the decision off. Joining this class to thank you.