The Systemico Model

Posted on August 23, 2012


Barry O'Reilly

Manage value not cost

One of the foremost challenges we constantly encounter on development projects is the focus of teams and product managers on managing cost rather than value. In its most basic form this manifests itself daily in user stories where teams tend to concentrate on prioritisation, scope management and throughput in terms of the size of the work. The usual question I hear once a story is described is ‘What size it is?’, in short – how much is that going to cost?

Fundamentally these teams see software development as a ‘cost’ that must be managed. They forget that software development is a value creation process and hence the goal of our approach should be focused around creating and realising value, especially from the perspective of our users.

As Warren Buffet stated, ‘Price is what you pay. Value is what you get’. What is needed is a change…

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