Lean Value Tree Overview

Lean Value Tree
The Product Strategy Map

Lean Organisation
In a Lean Organisation People are oriented to a common purpose
How do we align to a common purpose?

Alignment
 The Lean Value Tree (LVT) provides method for aligning strategy to a company mission
 A LVT is a simple tool for aligning people at all levels of a business
 A Strategic Map that can inform an investment strategy, provides focus limits scope whilst driving value
 Provides a light weight communication device that’s easily digestible
 A framework for managing scope and maintaining focus
 Enables decision making, determining if Tactical Ideas should be invested in
 Data driven to guide output in a given direction and understand if we’re being successful
 Impact Mapping can fit nicely as an extension method to determine Tactical Ideas

The Lean Value Tree
Ambitious Mission
Strategic Goal Strategic Goal Strategic Goal
Strategic Bet Strategic Bet
Promise of Value Promise of Value
Promise of Delivery Promise of Delivery
Promise of Value
StrategicLayerTacticalLayer

Stakeholders
Owner**
(Investment Case)
Accountability
C-Suite / Board
The road we will travel to achieve company
vision
Executives / VPs / Division Head
Direction Strategy where we will play to
achieve mission. Typically business focused
success metrics
Directors
Investment Strategy to deliver goals. Mixed
business and customer focused success
metrics
Managers (e.g. Product Manager)
Value Generators to achieve bets. Customer
focused value metrics.
Delivery Teams (e.g. Product Owner /
Technical Lead)
Experiments to achieve value.
Ambitious
Mission
Strategic Goal
Strategic Bet
Promise of
Delivery
Promise of
Value
**Stakeholder Roles will vary depending on organisation structure, or the level at which Goals are defined

Strategy Map
Ambitious
Mission
Strategic Goal Strategic Goal Strategic Goal
Whats our destination to
support the Company Vision?
What can we achieve to get
us there?
What strategies are we
betting on to achieve goals?

Lean Value Tree
Ambitious
Mission
Strategic Goal
Strategic Bet
• What is the Destination to support the company vision?
• Where do we want to be?
• Who are we as an organisation?
• Implicitly says who we are not?
• Specific enough to inform decisions
• Long Term Stability
• What do we need to do to achieve to get to the destination?
• Can have a focus on different horizons
• Outcome focused, not solutions
• Should have a measure of success
• Guide for Executive Investment
• Long Term Stability
• What Strategies are we betting on to achieve goals?
• Where will invest time and effort?
• Just one way to satisfy the strategic goal
• Primary driver is to satisfy the strategic goal
• Has its own measure of success
• Medium Term Stability

Measure Of Success
 Measures of Success are statistics that reliably reveal cause and effect
 Persistent, showing that the outcome of a given action at one time will be similar to the outcome of
the same action at another time;
 Predictive, there is a causal relationship between the action the statistic measures and the desired
outcome
 Financial metrics can not capture all value creating activities
 Other non-financial metrics could be: customer loyalty, customer satisfaction, product quality, etc
 Can be qualitative as well as quantitative

Tactical Ideas & Initiatives
Strategic Bet
How much are we investing? (MVPs)
Promise of
Value
Promise of
Value
Promise of
Delivery
Promise of
Delivery
Promise of
Value
What Value are we offering to
Customers to help us to achieve
the bet

Lean Value Tree
Promise of
Value
Promise of
Delivery
• What Value are we offering to Customers to help us to achieve a bet
• Ownership of the Problem, not the solution
• Allows room to ideate and experiment
• Business Requirements / User Story
• Impact Mapping
• Hypothesis Driven Development
• Experimentation used to find best solution
• Scope defined by level of investment
• How much are we investing? (MVPs)
• SMART - Specific, Measurable, Achievable, Reliable, Time boxed

Systems Thinking: Value
When we speak of about value, what we really mean is:
“Products, or services, that solve a problem for a customer, or end-user,
for which they are willing to exchange some other value, like money.”
It could just as well be Time, Information, Energy, or really any form of Currency

Customer View
 Who is the customer?
 Develop a Total Customers Model – B2C, B2B, Partners, Suppliers, Staff, etc
 Customer Focused care about Wants vs Customer Centric care about Needs
 Customer Centric – Predicting customer needs and demands
 Understanding the user experience, identifying customer problems and conducting customer research
 Embed customer thinking
 What is the value to the customer?
 Validate customer need

Lean Value Tree - Roadmap
Strategic Bet
Promise of
Value
Promise of Value
Aligned to Bet
Requirement
Requirement
Requirement
Promise of
Value
Promise of
Value
Promise of
Value
Promise of
Value
Strategic Bet Filter
Promise of
Value
Promise of
Value
Promise of
Value
Promise of
Value
Promise of
Value
Roadmap & Product BacklogFiltering Business Requirements
ThemeTheme

What is Impact Mapping?
 One way of Identifying the tactical PoVs/ & PoDs
of an LVT
 A fast simple means to elucidate ideas /
experiments to achieving a Goal
 Identify all stakeholders that can assist reaching
the goal (The User of a User Story)
 The impacts that the stakeholder can help achieve
provides a backlog
 The level of impact helps to define priority
 Impact Mapping helps to focus Scope
 Can be achieved as a single workshop if all the
‘Actors’ can be available

Relating Impact Mapping to LVT
Why – Whats the Goal?
From the LVT the Goal of Impact Mapping would be the Bet,
or a Success Criteria for a Bet
Who – Who can help us achieve reaching the Goal / Bet?
Provides the customer focus. Can be Someone within the
business, end users (customers), 3rd Parties, etc
How – What type and size of impact can an actor provide
towards reaching he goal?
From the LVT this would be equivalent to the Promise of
Value
What – What deliverables are required to achieve the
expected Impact?
From LVT this would be equivalent to the Promise of
Delivery
Bet PoV PoD

Related Information
 Hoshin Kanri – Lean Policy Deployment / Strategy Deployment
 Lean Portfolio Management – Investment Strategy
 KPI Trees – Strategic Value
 Impact Mapping – Tactical Idea Generation (From Bet to Delivery)
 Lean Start Up / Business Model Canvas
 Customer Value Map – Customer Value Focus (see also Value Proposition Canvas)
 Validated Learning / Hypothesis Driven Development
 Kano Analysis

Lean Value Tree Overview

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