The following article is a sample from the full BVOP™ Ultimate Guide and is part of the preparation for the BVOP™'s modern Agile Project Management Certification Program.
The BVOP introduce the measurement of Business Value Points as a practice and tool for evaluating the current overall business value of the product being developed and its fluctuation over time.
The total value of the business value points of the product is the sum of the business value points of all its planned developments (all functionalities, modules, parts).
All efforts (tasks, user stories, planned work) planned to be developed as part of the product are evaluated individually with business value points.
Total Business Value Points for a Time Period
Total business value points over a period of time is the sum of all business value points of all efforts developed over a certain period of time.
Example: All planned tasks for a given month are 100 in total. The first 10 planned tasks are rated with 20 business value points (BVP) each. The next 30 tasks are rated at 30 BVP each. The remaining 60 tasks are rated at 5 BVP each.
The total BVP is 800, which can be considered as the total business value points value for the period.
Prioritizing development by business value points may be a transparent method of prioritizing Product Backlog items or task planning based on real value.
Product evaluation based on business value points
The measurement of business value points can show rise and downs in the total business value of the product as a whole.
If the total business value points for a given period is greater than the total business value points for the previous period, this may indicate a previous undesired prioritization of the development tasks. In this way, the management offices can detect mistakes in management and take corrective measures.
An optimistic reason for higher business value points per period can be improved research practices or acquired new knowledge from stakeholders or users.
Normally, each subsequent period should have a less total sum of business value points, as work is prioritized by the business value points of each task.
In theory, at some point, the expected business value points for a period will be 0, as there will be no more valuable development work.
Tracking the fall in total business value points over periods may be a decision-making tool to close a product or project development phases.
If total business value points for the past few periods are very low, project sponsors or other stakeholders may decide to close the development or forecast when they will eventually close it, based on the trend of decreases.
Assessment of business value points of planned efforts
If any planned work (effort) has assigned business attributes such as importance, urgency, attractiveness, etc., and each attribute has a numerical value, the business value points (BVP) of each planned work is a sum of the values of all attributes.
If a planned effort titled "Uploading a profile photo" has business attributes like:
This planned effort has 18 BVP.
Another planned effort, titled "Forgot password", has business attribute values:
This planned effort has 20 BVP.
In this example, the planned "Forgot password" effort may be planned for development before the "Uploading a profile photo" effort because it has more business value points.
The Business Value Oriented Project Management (BVOPM) and Business Value Oriented Product Management (BVOPDM) offices create the business attributes and their number according to the product, project, organizational needs, and other factors.
It is of particular importance that the planned efforts are evaluated against the same business attributes so that accurate business value points can be calculated and that the calculation and measurement are easier and more transparent.
More details about the business attributes of the planned work are presented in the Business Value Oriented Product Management section.