The subject of value and how to measure it is becoming more and more popular among agilists. A very useful contribution on this subject comes from Ryan Shriver in an article called ‘Measurable Value with Agile’ which is published in the February 2009 issue of Overload. His contention is that many organisations have no real way to measure the value delivered by the features they develop and therefore by extension no real way of assessing whether the right software is being created. Shriver draws the distinction between delivering the right things and delivering things right, further noting that Agile has proved particularly good at the later. Others have made comments along the same lines including an excellent piece by Kent Beck called ‘Learning from Lean’, which states that software development often seems to occur in a purely technical context devoid of business or social purpose. Broadening the perspective of Agile past a purely technical focus is an area where we can certainly learn from lean.
The solution to this problem which Shriver advocates is the so called value delivery approach which is a combination of existing principles and practices from the groundbreaking EVO method developed by Tom Gilb. Three years ago we were fortunate enough to have a presentation from Tom at Agile Scotland so my interest in this article increased when I read that it was a new practical application of EVO, a method which is often eclipsed by more popular Agile approaches such as XP. The measurable value approach doesn’t use stories or tasks to measure value as these have proved to be too low level to be of real use. Another interesting thing about the value delivery approach as described here is that it can be used in conjunction with Scrum which is the most popular of all the Agile methods.
There are six steps to implement the value delivery approach beginning with identifying stakeholders, objectives and resources. Three key questions should be asked during this first step:
- Who are my stakeholders?
- What are their objectives?
- What resources are available?
The second step involves the quantification of objectives which is undertaken not for measuring or tracking but to help clarify requirements. As Gilb says “The main purpose of quantification is to force us to think deeply, and debate exactly what we mean”. The connection is not made explicitly here but this type of logic very similar to that used to justify writing acceptance tests prior to the development of features. Overall this must surely indicate the importance which people are attaching to clarifying requirements as early as possible and an understanding of the perils of not developing this thorough understanding.
The next step is to identify targets, constraints and benchmarks. Targets are the performance levels that the team is trying to achieve. These are not provided solely from the stakeholders but emerge as a result of a dialogue between developers and stakeholders. Constraints are the levels that should be avoided or the minimum standards necessary to ship the product. Benchmarks are the levels achieved today or whats been achieved in the past, they enable an understanding of the current state and assessing how close we are to achieving our goal. The EVO concept of Planguage is used here very effectively to help clarify the targets, constraints and benchmarks and make it easy to identify qualifiers and sources.
When the team has decided how it’s going to measure success they need to decide how they are going to achieve these objectives. They do this by brainstorming design ideas a process which involves the whole team rather than just executives and product manager in order to get a better shared vision.
The brainstorming exercise will very likely produce more than one idea and to help decide on the best one to pursue the value delivery approach advocates using impact estimation on three of the possibilities. The table created by this estimation allows the options to be easily compared and is a powerful tool for the job. The use of impact estimation is perhaps the strongest element of this whole article as it provides a simple yet powerful solution for a very real problem in many teams- namely how to decide on the best options.

Impact Estimation
The final step is Agile integration. The standard Scrum methods are used to make sure that things get built right but when value delivery approach is added in the team gets rewarded for delivering value not just developing features. If after the first few iterations there is not sufficient movement towards the goals then this option can be cancelled and another one of the options can be picked up.
The Scrum product backlog is integrated with value delivery in three ways:
- User stories should be priortised by business value
- Teams should prioritise quality requirements alongside functional requirements
- Both user stories and quality stories should use story point estimates
In addition to the normal end-of-sprint activities teams should also be reporting the progress on measurable value.
The value delivery approach has been used on a number of projects and a number of problems with adoption have been identified. Two problems stood out from this list. The first is appreciating the concepts of measurable value where Scrum has been adopted bottom up. The developers in these teams are doubtless focussing on stories to the detriment of everything else which is a problem I have experienced at first hand in an XP context. The second major issue is that if there is no continual support from business for measurable value then the development team will not think that this is important. So in other words for this approach to work it needs to be supported from both sides. I can see the business side wholeheartedly adopting the value delivery approach but I think there may be more of a problem making developers shift focus from user stories.
In conclusion I would say that this is an excellent article which outlines several novel approaches to very real problems. Its great that EVO is being used as part of this solution and good for its chances of adoption that it can be combined with Scrum. As Shriver says this is just one of the attempts to combine Scrum with other methods to get better results.