How important is Continuous Value Justification for a Scrum Project?

June 9, 2014
By

How important is Continuous Value Justification in a Scrum Project?

Every project is expected to create some form of business value that outweighs the associated costs

and risks in order for it to be undertaken. But what is business value? And how can one ensure

that the project delivers business value on the expected lines? Business value can be looked at

in financial or non-financial terms such as reduction in costs, increase in revenue, enhancement

in brand value, and increase in satisfaction level among customers, reduction in the number of

complaints, reduction in risks or improvement in organizational capability, etc.

To ensure realization of business value, Scrum relies on continuous value justification. Continuous

value justification refers to assessment of business value regularly to determine whether the

justification or viability of executing the project continues to exist. Business value should be assessed

regularly to determine whether the justification or viability of executing the project continues to

exist. Frequent assessment of investment in the project relative to business value being created

qualifies the continued viability of a project. The expected requirements from the project may

change frequently, which can impact both project investment and value creation.

A key aspect of Scrum is its ability to quickly adjust to chaos created by a rapidly changing business

model. In projects with ambiguous user requirements and significant potential for frequent changes,

Scrum provides considerable advantages over other project delivery models. Monitoring the rate of

delivering value is an important requirement for Scrum projects. Periodically tracking and reporting

the creation of value assists in assessing project status and provides important information to the

customer and other stakeholders. Hence, continuous value justification plays a vital role in the key

decision making processes related to the project.

Share

Leave a Reply

Your email address will not be published.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

*


seven − = 1

Subscribe

Follow Us On

Post-Plugin Library missing