Business Value

Every organisation produces "Business Value". The term refers to anything that supports the health of the organisation in the long term. For a commercial enterprise this usually means sustained revenue growth and profitability, although it may also be tightly linked to the organisation's mission.

Ideally, all the work done by and for an organisation should enable (directly or indirectly) the creation or maintenance of business value. Work that does not is either wasteful or damaging.

However! It may not always be apparent how work supports or negates the creation of value, especially where it isn't clear what business value actually is.

Example

A team perform an experiment which turns out not to create the expected positive outcome.

This work could be perceived as wasteful or even damaging. However, the team have gained valuable knowledge that could improve their ability to support the health of the organisation in the long term (business value generated). If the team fail to leverage this knowledge, or even carry on with their experiment regardless of its outcome, it may well in fact be wasteful or damaging (business value lost).

Creating a link between Business Value and the work we do helps to guide us to do more valuable work, and even improve our ability to do more valuable work. Not only does this make our organisation more effective, but it can improve individual motivation, job satisfaction, and happiness.

The Topology of Business Value¶

This model aims to demonstrate the link between business value and the common structures used in software delivery environments. Visualising this model can help us to express this link and its importance, as well as help us to explore how a specific things are related.

Example

You are working to refine and implement a backlog item, such as a new feature. It is relatively easy to explore, plan, and even execute the work required to deliver this backlog item, but it may not be immediately clear in how this backlog item brings value to the business.

Exploring and understanding the problem, the business objective or the overarching outcome that is being addressed may be the missing link.

Now we might look to improve this link: Is the problem well defined? Has this information been effectively shared? What other expertise could help validate that this problem is worth solving?

And then we look further: what kind of value is being created? How does this support the health of the organisation in the long term?

The model image is created using Miro. This board may change over time and these changes are not recorded in this document's git history. The board is publicly visible.

Approach agnostic¶

The model above uses some language that implies certain approaches, such as "backlog" or "roadmap". Regardless of the approach being used, the theory should stand true. We evolve our techniques to support improved links, and in turn create better value.

Business Value

The Topology of Business Value¶

Approach agnostic¶

Further reading¶