The following article is part of the self-preparation for the modern BVOP® Project Management Certification program.
The BVOP introduces the measurement Business Value Points as a practice and tool for evaluating the current overall business value of the product that’s being developed and its business value fluctuations over time.
- Total Business Value Points for a Time Period
- Product evaluation based on business value points
- Assessing business value points of planned efforts
The total value of the product’s business value points is the sum of points of all 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 using business value points.
Total business value points over a period of time is the sum of all business value points obtained from all the developed efforts for a specified period.
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 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.
The measurement of business value points can show the rise and fall of the total business value of the product.
If the total business value points for a given period are more than the total business value points for a previous period, this may indicate an undesired prioritization of the development in the prior tasks. This way the management offices can detect mistakes in management and take corrective measures.
An optimistic reason for a higher number of 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 lesser 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.
If total business value points for the past few periods are very low, project sponsors or other stakeholders may make the decision to close the development or estimate its eventual closure, based on the decrease of business value points per period.
If any planned work (effort) has been 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 the sum of all attributes’ value.
If a planned effort titled "Uploading a profile photo" has business attributes as follows:
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 might be scheduled 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 value 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, therefore making those procedures easier and more transparent.
More details about the business attributes of the planned work are presented in the Business Value-Oriented Product Management section.
The following issues related to chapter "Business value points measurement" are included in the certification exam. The sequence of questions is presented in the table.
The data is current as of December 3, 2020, 7:00 pm
|0||Total Business Value Points for a Time Period||60 sec||PM, PDM|
|1||Product evaluation based on business value points||60 sec||PM, PDM|
|2||Assessing business value points of planned efforts||60 sec||PM, PDM|