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Agile 101: Product Owner - Improved Insight into Customer Needs

Scrum Agile Leadership and communication skills for Product Owner

In a Scrum-Agile project management environment, the product owner acts as a catalyst of change in the organization, enabling value creation through projects and products. Product owners create the required link between how the business would look like in the future and the current state. The product owner is a key facilitator within the organization in bridging the client and the business community with the Agile development team.

Most of what a product owner performs can be defined in the broader sense as: 1) Creating and increasing value for the business, and 2) Eliminating and reducing costs for the business.

The product owner is required to identify business needs and determine solutions to business challenges. We can characterize the role description of the product owner as related to the above tasks into several key responsibilities. The product owner needs to:

  1. Mine for and create epics that guide the business towards value creation and cost savings;
  2. Plan and maintain epics, themes and user stories;
  3. Elicit epics, themes and user stories;
  4. Reach consensus and understanding of epics themes and user stories between the business and the Agile development team;
  5. Focus on user stories according to specific guidelines such as INVEST (Independent, Negotiable, Valuable, Estimable, Small, Testable);
  6. Communicate and collaborate continuously.

As the product owner is the focal point for strategic and tactical product management, he or she collaborates with many stakeholders and must communicate with all of them. Specifically the product owner interacts with the business community and the Agile development teams on a regular basis. He or she should also communicate with management in making sure that business objectives are indeed captured in themes and epics.

On any single Agile development effort the product owner:

  1. Elicits user stories, making them INVESTabile;
  2. Analyzes them with the team;
  3. Provides feedback to the business community;
  4. Communicates continuously while prioritizing user stories;
  5. Monitors user stories to their respective epics and themes;
  6. Supports the Agile development teams throughout the Sprint - providing clarifications where needed;
  7. Approves and accepts the developed features at the end of the Sprint;
  8. Maintains a rudimentary or full-fledged traceability of user stories to business, to epics and themes, and to any other relevant criteria that he has defined.

Communication is a key differentiator in the product owner's effectiveness and most often an aspect in which product owners are lacking the necessary know how. This, in turn, impacts negatively the product owner's performance. Emphasis is given to the elicitation of user stories since product owners are usually gathering the stories instead of eliciting them.

The main difference between gathering and eliciting is: Elicitation is an analytical, free-flowing communication and collaboration effort which fits well with Agile development as described in the Agile Manifesto. Gathering is a passive activity with little invested analysis. When a product owner is a gatherer he is actually no more than an administrator.

To summarize the points above: it is vital that the product owner understands the context in which he is working, the tools that she can use while performing the work, and the essence of what it means to be a product owner in an effective Agile product development environment.

Improved Insight into Customer Needs

The product owner constantly communicates and collaborates both with the business community and with Agile development teams. Communicating is the basis for collaborating. Communicating has several goals:

  1. Letting others know of something;
  2. Asking for feedback from others;
  3. Convincing others;
  4. Proactively building relationships.

In the process of communication, personal, cultural, intercultural, and language barriers exist. The product owner should be cognizant of these barriers and understand that the same message can be perceived differently than anticipated as well as differently by various groups and teams of stakeholders. An effective product owner understands that messages are received, deciphered and perceived differently by others since they have individual and distinct perception filters. Examples of filter categories can be:

  1. Values-personal - values impact the way a message is perceived;
  2. Interests -  a specific team member interest in a certain user story can impact the way he estimates that story;
  3. Expectations -  different expectations result in different levels of collaboration;
  4. Past experience - past experience can alter how people accept a certain message and respond to it. This for example can result in different understanding of the same user story to be developed.

When communicating we are subjective, moving away from messages that conflict with our ideas and beliefs. We tend to hear just what we want to hear, and we usually pay more attention to things that interest us. Our past experience impact and biases us, emotions and psychological states impact how we perceive a message and how we communicate. Taking into account these obstacles to mutually effective communication, it is vital that the product owner spend time both when eliciting the user stories and also in conveying them to the team. During the Sprint planning meeting or for that matter any other Agile process which includes detailing the user stories to the development team, care should be given to feedback loops and the clear understanding of what is required to be developed.

When discussing the user story with the Agile development team, for example, it is not sufficient to read out loud the user story cards. The product owner should actively ask for feedback to assure understanding concerning the specific story.It is useful to add graphics, diagrams, illustrations and mind maps to emphasize the understanding.

I probably cannot emphasize enough how important this is in an Agile environments. Since Agile is scarce in formal documentation the clear and concise understanding of what is required to be developed during the collaborative process between product owner and the Agile development team, is key to the Agile development process. Without the clear understanding of what needs to be developed, the team might be investing efforts in the wrong direction. Thus, it can be a very efficient Sprint - speedy and producing the stated results; however it will also be an ineffective Sprint - the results received are not the ones that were required.

This constant feedback and communication loop between the product owner and the business community, and between the product owner and the development team, is key to successful product development in Agile environment. It is also a key element in any product development environment; however, as mentioned before, the typical lack of formal documents in Agile necessitates the constant communication and collaboration, clarifying expectations and interests during Agile development.

I suggest that all product owners participate in communication skills training, learn strategies in developing their skills and enhance their facilitation techniques. A practical approach to handle the communication barriers is to make sure that:

  1. One knows the communication objective ahead of time;
  2. Remains cognizant during a communication interaction and analyze the specific situation from both the communicator and the receiver perspectives.
  3. Remains aware of the restrictions imposed by the environment.
  4. Establishes and promotes a multi-way feedback loop;
  5. Is able to communicate in more than one method: i.e. pictures, drawing, diagrams and prototypes. These are great tools to enhance communication.

The product owner's core competencies are facilitation, communication and leadership skills. Effective product owners are able to:

  1. Listen
  2. Emphasize
  3. Facilitate meetings
  4. Handle tough communication and conflict management situations
  5. Be effective presenters
  6. Lead product related business decisions and openly discuss them with the Agile development team
  7. Negotiate, mediate and influence between the Agile development teams and the business community.

Agile Product Owner Michael Amazon

This article is excerpted from the author’s new e-book Agile Product Owner Secrets. A print version of the book is found here

More Stories By Michael Nir

Michael Nir - President of Sapir Consulting - (M.Sc. Engineering) has been providing operational, organizational and management consulting and training for over 15 years. He is passionate about Gestalt theory and practice, which complements his engineering background and contributes to his understanding of individual and team dynamics in business. Michael authored 8 Bestsellers in the fields of Influencing, Agile, Teams, Leadership and others. Michael's experience includes significant expertise in the telecoms, hi-tech, software development, R&D environments and petrochemical & infrastructure industries. He develops creative and innovative solutions in project and product management, process improvement, leadership, and team building programs. Michael's professional background is analytical and technical; however, he has a keen interest in human interactions and behaviors. He holds two engineering degrees from the prestigious Technion Institute of Technology: a Bachelor of civil engineering and Masters of Industrial engineering. He has balanced his technical side with the extensive study and practice of Gestalt Therapy and "Instrumental Enrichment," a philosophy of mediated learning. In his consulting and training engagements, Michael combines both the analytical and technical world with his focus on people, delivering unique and meaningful solutions, and addressing whole systems.

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