In Agile development the quest for Value has become an obsession in the absence of other factors. The first missing attribute is what does it cost to produce that mythical Value. We focus on value over focusing on cost, is a nonsense statement in any Managerial Finance paradigm.
We cannot assess the value of a product or service until we know the cost to acquire that product or service
In the value definition parlance we need to use units of measure that are meaningful to the decisions makers
- Measures of Effectiveness - these are operational measures of success that are closely related to the achievements of the mission or operational objectives evaluated in the operational environment, under a specific set of conditions. The Measures of Effectiveness belong to the end user
- Measures of Performance - characterize physical or functional attributes relating to the system operation, measured or estimated under specific conditions. The Measures of Performance beong to the Program – Developed by the Systems Engineer, Measured By Project team, and Analyzed by Program Planning and Controls
- Technical Performance Measures - determine how well a system or system element is satisfying or expected to satisfy a technical requirement or goal
- Key Performance Parameters - represent the capabilities and characteristics so significant that failure to meet them can be cause for reevaluation, reassessing, or termination of the program
These are connected as
The next level of detail of these measures can be described below from "Review of Value and Lean in Complex Product Development," Ghadir I. Siyam, David C. Wynn, and P. John Clarkson in Systems Engineering, Vol. 18, No. 2, 2015.
In the end the define of Value is a Systems Engineering process.
So when we hear we focus on value ask how much does that value cost? What are the units of measure of that value? Are those units of measure meaningful to the decision makers?
No answers, then value is a meaningless phrase, just a platitude.