The Rules of Scrum: PBIs are ordered by expected Value (ROI, NIAT, etc)

Product Backlog Items are ordered into a sequence in the Product Backlog in such a way that the Product Owner is able to maximize the return on investment (ROI) in the team.  The very first PBI in the Product Backlog should be the one with the highest expected value considering the effort to build the PBI.  There are many ways to calculate this expected value including Return on Investment (ROI), Net Income After Taxes (NIAT), Net Present Value (NPV), etc.  The Scrum Team members should be free to ask why one PBI is prioritized higher than another, and the Product Owner should be able to give a reasonable answer. Since the entire Scrum Team is accountable for its work, it is in the best interest of all members of the team to use expected value, so that both the Scrum team and the customer will be committed to the work that is currently being worked on and the upcoming work in the future Sprints.  If we don’t order the PBIs by expected value, then the Product Owner is likely to prioritize them based on dates, feelings, urgency, or other less valuable methods.  These other prioritization methods will diminish the trust of the team in the Product Owner and may lead to morale problems.

Try out our Virtual Scrum Coach with the Scrum Team Assessment tool - just $500 for a team to get targeted advice and great how-to information

Please share!
facebooktwittergoogle_plusredditpinterestlinkedinmailfacebooktwittergoogle_plusredditpinterestlinkedinmail
This entry was posted in Reference Information, Scrum, XP and Lean and tagged , , , , , , by Mishkin Berteig. Bookmark the permalink.

About Mishkin Berteig

Mishkin Berteig is a Baha'i, a father of four, a husband and an experienced Agile consultant and trainer. Mishkin is a Certified Scrum Trainer (CST) with the Scrum Alliance, a certified Master of OpenAgile wight he OpenAgile Centre for Learning and a certified SAFe Program Consultant (SPC) with the Scaled Agile Academy. Mishkin has a technical background including a B.Sc. in Computer Science and worked as a Chief Architect reporting to the CIO of Charles Schwab, but gave it up to be more Agile.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>