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Scrum and Business Strategy

Although the concept of a “business strategy” is not mentioned in the Scrum Guide, it provides vital context that helps the organization define products and their goals. 
 

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vision to goals

The relationship between Mission/Vision, Business Strategy, Product Vision, Product Strategy, and Product Goals

Product Owners use the business strategy as guidance to their product planning activities. From the business strategy, they craft a product vision and product strategy for each of the products in the company’s portfolio. From this, they set the first Product Goal and the team creates a Product Backlog to fulfill it.

Establishing a business strategy is a complex problem that requires an empirical approach. The business strategy should be continually adapted as more is learned. Ideally, the business strategy should outline several experiments for validating assumptions that are made in the strategy. For example, experiments to:

  • Investigate a hypothesis that a flattened organizational structure will help deliver value
  • Validate that a new market segment is worthy of investment
  • Understand whether the use of new technology would be viable and worth the necessary expenditure

An agile approach to strategic planning is to support the self-management of product teams by providing clear goals, boundaries and accountabilities. This can be done by performing just enough business strategy planning to provide the guidance that product leaders need to make decisions and formulate the company’s product or product portfolio. 

Helpful Tools

Business Model Canvas, a tool for facilitating discussions of business or product strategy

Lean Canvas, another tool for facilitating discussions of business or product strategy that uses concepts borrowed from the Lean Startup community

 


Resources:

Learning Series
The Product Vision describes the purpose of a Product. A good Product Vision expresses the value the Product should deliver and to whom that value is delivered.

 

Module
A product is a vehicle for delivering value, meaning valuable outcomes, to customers.Outcomes are experiences that help the customer to achieve, or at least make progress toward, a goal that they value.The word "product" encompasses a broad range of solutions that organizations can use to deliver va...
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Learning Series
A Product Owner is the member of the Scrum Team that is accountable for maximizing the value of the product resulting from the work of the Scrum Team. Learn more about what that means and a few of the common myths about Product Owners.

 

 

 


 


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Included In

Learning Series
Business strategy is informed by the company’s mission and vision, and in turn informs individual product visions. An organization inspects and adapts its business strategy based on feedback gathered from delivering product Increments.