The Value of Business Value

Business Value is often the holy grail of Product Management (and rightly so) especially when working in Agile.

Business value is genuinely very important; product managers are tasked with building products that offer some real value to somebody. Business values impact almost everything that we do with our product - its positioning, its go to market, its roadmap and its customer centric focus. These core elements of the art of product management are derived from and driven by the business values.

Classically we build things that people want to buy, advancing the business plan of our company. In other cases we may be trying to build infrastructure or experimenting with some novel ideas. However, in almost all cases we can define the objective with business value even if it is a stage or more removed from an actual sale to a customer. I plan to explore business value in these indirect cases in a future post.

So given that business value is one of, if not the primary objective of our professional lives it seems surprising how little attention many of us pay to the business value. Sure we read and write documents with some lip service to the business value. When we do a kick-off meeting we feel forced to generate a couple of statements on the subject and every so on a senior manager will feel the need to talk to even more senior people and have a mini crisis trying to generate a set of business values across all the products that they sponsor. It is possible that this is mainly a feature of big organisations; but my suspicion is that it is a common feature. It is more fun to build and design than to make bold declarations of future business value.

The crux of the issue is that it is really very important and on the critical path of everything that we do. If you are lucky enough to be constantly customer facing then you probably have a pitch maybe even several for different segments, but for the rest of us it is rarely on the agenda.

So here is an idea that I plan to put into action tomorrow - to have a slide deck or excel or some other file with every product that I manage together with its business value. So far, relatively easy, now for the hard part -  to try to keep it updated - say four times a quarter. At most reviews I think it will just be a critical read through and add the review date; but every so often things will change.

I think that this exercise will help in a few ways -

• We will really understand why we are building the product
• We will be able to remain true to the objective and not get inadvertently side-tracked in the natural drift of a dynamic product
• We will make any necessary changes actively after due thought 
• Of course finally we will always be able to provide answers to anybody who needs to know right now