Applying Agile principles to business strategy using psychology:Expanding the Definition of Customer Value
Novelty Note:While the SCARF model has been applied to Agile team dynamics and customer experience, this post introduces a new synthesis: applying Scrum thinking + SCARF psychology to identify “invisible increments” — high-societal-value groups like construction workers — as underserved customer segments.
Context
Scrum emphasizes delivering valuable increments frequently and maintaining a strong focus on the customer. Yet many organizations prioritize high-revenue segments, overlooking essential workers who provide enormous societal value but are rarely recognized in strategic planning.
I call this oversight the “Invisible Increment.”
The Invisible Increment
Take construction workers as an example. They produce a “Done” increment every day — buildings, roads, and infrastructure that enable all other business operations.
Yet they are often ignored as a meaningful customer segment. This contradicts Agile thinking, where real value goes beyond what is easily measurable.
Are we optimizing for the highest societal value or just the highest transactional value?
Using SCARF to Redefine Customer Value
To address this blind spot, I would like to use David Rock’s SCARF Model, which identifies five drivers of human motivation:
- Status
- Certainty
- Autonomy
- Relatedness
- Fairness
These dimensions help redefine value in a human-centric way. Value is not only financial — it is psychological.
Example: A Fast, Empathy-Driven Agile Increment
Imagine a retailer launching a simple initiative:
“To all construction workers: thank you for building our community. Anyone with one year of experience can receive an immediate discount on essential safety gear.”
Why is this an Agile increment?
- It is simple and fast to launch
- It directly addresses SCARF needs (Status, Fairness, Relatedness)
- It generates immediate customer feedback
- It builds a human-centered relationship, not just a transaction
The first increment delivered is recognition, not the discount.
Key Takeaways
- Accelerate Feedback Loops – Emotional response gives rapid confirmation of value.
- Deliver the Highest Value First – For overlooked groups, recognition > pricing.
- Reveal Hidden Customer Segments – Scrum emphasizes value; psychology helps identify where it actually exists.
- Strengthen Human-Centered Strategy – Agile is not only a delivery method; it is a mindset that prioritizes people.
Discussion Questions
- How can Scrum teams help organizations identify their own “invisible increments”?
- Should Agile organizations use psychological models like SCARF to define value?
- Have you seen examples where recognition delivered more value than a feature or discount?
The concept of 'invisible increments' is fascinating. I believe it complements Evidence-based Management (EBM) very well.
In EBM, we consider 'current value', which is the value we already deliver to our customers, and 'unrealised value', which is the additional value we could deliver.
'Invisible increments' refer to the part of unrealised value that has not yet been recognised. In this context, 'invisible unrealised value' is a more appropriate term.
When we try to measure unrealised value, we naturally only measure the visible part and may overlook the invisible part.
Considering psychological factors such as which people are often overlooked and how we can increase customer value by providing recognition can definitely help to uncover 'invisible unrealised value'.
Therefore, thank you for your thoughts.
Hi Benedikt,
Thank you so much for taking the time to reflect so deeply on the idea.
I really appreciate how you connected invisible increments to EBM — especially the way you framed it as invisible unrealised value. That wording is much more precise, and I agree that psychological factors and overlooked groups fit naturally into that dimension.
Your perspective adds clarity to my concept, and I’m grateful for that.
Thank you again for your thoughtful contribution.