SAFe-APM SAFe Agile Product Manager (APM 6.0) Questions and Answers

Investment horizon 3 is the longest-term horizon that focuses on exploring and developing breakthrough innovations that can create new markets and revenue streams for the business. It is important for every business to allocate funding to investment horizon 3, because it enables the business to anticipate and respond to the changing customer needs, technological trends, and competitive threats, and to secure its future growth and survival. Investment horizon 3 requires a high level of creativity, experimentation, and risk tolerance, but it can also generate a high level of return and differentiation.

References:

Horizon Planning: This article from the Scaled Agile Framework explains the concept and purpose of horizon planning, and describes the four horizons and their characteristics, challenges, and best practices.

SAFe®’s investment horizon model — A synopsis: This article from Medium provides a summary of the SAFe investment horizon model, and illustrates how it can help organizations allocate their resources and manage their portfolio.

Enduring Ideas: The three horizons of growth | McKinsey: This article from McKinsey presents the original framework of the three horizons of growth, and discusses how it can help businesses balance their current and future opportunities and challenges.

The horizon model is a framework that helps organizations balance their investments across different time horizons and types of innovation. According to the Scaled Agile Framework, there are four horizons: Horizon 0, Horizon 1, Horizon 2, and Horizon 31. Horizon 1 describes the desired state as stable solutions that deliver high value with minimal new investment. These are the core products or services that generate most of the current revenue and profit, and have a loyal customer base. Horizon 1 solutions require continuous improvement and optimization, but not significant new investment or disruption. Horizon 1 can be further divided into two sub-horizons: Investing and Extracting2.

References:

Horizon Planning: This article from the Scaled Agile Framework explains the concept and purpose of horizon planning, and describes the four horizons and their characteristics, challenges, and best practices.

SAFe®’s investment horizon model — A synopsis: This article from Medium provides a summary of the SAFe investment horizon model, and illustrates how it can help organizations allocate their resources and manage their portfolio.

The most important planning question for primary research is what will be asked, because this determines the type, quality, and relevance of the data that will be collected. The research question or hypothesis should be specific, narrow, and discoverable through primary research methods, and it should align with the research purpose and objectives. The research question or hypothesis guides the choice of the research medium, the sample size and selection, and the data analysis and interpretation.

References:

What is Primary Research?: This article from Purdue OWL defines primary research and explains the steps and considerations involved in planning and conducting primary research.

10.3: Planning Your Primary Research Project: This article from Humanities LibreTexts provides some tips and examples on how to plan a primary research project, including defining the research question or hypothesis, choosing the research method, and designing the research instrument.

The chasm is the gap in the technology adoption lifecycle between the early adopters and the early majority. The early adopters are enthusiasts who are open to trying new technologies, whereas the early majority is more pragmatic and cautious. The chasm occurs due to the differing expectations and requirements of these two groups. An innovative product is a product that introduces a new or significantly improved technology, functionality, or design that creates a new market or disrupts an existing one. An innovative product might face a chasm in its adoption, because it may not appeal to the mainstream customers who value reliability, compatibility, and convenience over novelty and differentiation. Therefore, an innovative product needs to cross the chasm by finding a niche market, establishing a clear value proposition, and creating a strong word-of-mouth.

References:

Crossing the Chasm in the Technology Adoption Life Cycle: This article from Business to You explains the concept and purpose of the technology adoption lifecycle and the chasm, and how they can help marketers understand and target different customer segments.

How to Cross the Chasm & Scale Your SaaS: This article from Userpilot provides a practical guide on how to cross the chasm and scale a SaaS product, with examples and tips on finding product-market fit, defining a beachhead market, and creating a whole product.

An Enabler Feature is a type of feature that supports the development and delivery of future business features by extending the architectural runway, improving the infrastructure, or addressing compliance. An Enabler Feature is usually defined and prioritized by System/Solution Architects, who are responsible for designing and guiding the technical aspects of the solution. Therefore, the best stakeholder to collaborate with if a Product Manager wants to discuss an Enabler Feature for the upcoming PI is the System/Solution Architect, as they can provide the necessary technical expertise, guidance, and alignment.

References:

Enablers - Scaled Agile Framework

System and Solution Architect/Engineering - Scaled Agile Framework

PI Planning - Scaled Agile Framework

One of the strengths of qualitative research is that it can be applied to a large number of people, as it does not require a fixed sample size or a predefined set of questions. Qualitative research can use various methods, such as interviews, focus groups, observations, or document analysis, to collect data from different sources and contexts. This allows researchers to explore a wide range of perspectives, experiences, and meanings, and to generate rich and diverse insights.

References:

23 Advantages and Disadvantages of Qualitative Research

5 Strengths and 5 Limitations of Qualitative Research

Market segmentation is the process of dividing a market into distinct groups of customers who have similar needs, preferences, or behaviors. Market segmentation helps enterprises identify and target the most valuable and profitable customer segments, design and deliver solutions that meet their needs, and optimize their marketing strategies and campaigns. However, market segmentation is not only based on quantitative factors, such as size, growth, and profitability, but also on qualitative factors, such as values, mission, and vision. A market segment should align with the enterprise’s values and mission, which reflect its purpose, identity, and culture. A market segment that aligns with the enterprise’s values and mission will help the enterprise achieve its strategic goals, create a positive brand image, and build trust and loyalty with customers.

One of the characteristics of effective market segmentation is that the segment should be valuable enough to be economically feasible. This means that the segment should have enough potential customers who are willing and able to pay for the products or services offered by the enterprise. The segment should also generate enough revenue and profit to cover the costs of marketing, production, and distribution. The segment should also have a positive impact on the enterprise’s return on investment (ROI) and net present value (NPV). A segment that is not valuable enough to be economically feasible will not be sustainable or profitable for the enterprise.

References:

Customer Centricity - Scaled Agile Framework

Advanced Topic - SAFe for Marketing - Scaled Agile Framework

What is one consideration when evaluating the fit for a market segment?

5.4 Essential Factors in Effective Market Segmentation

Feature estimates are aggregated back into the Epic estimate as part of the lean business case. The lean business case is a lightweight and collaborative artifact that captures the rationale, assumptions, and financial projections for an Epic. The lean business case includes the Epic value statement, which consists of the value proposition, the benefit hypothesis, and the Epic estimate. The Epic estimate is the total effort required to implement the Epic, expressed in story points. The Epic estimate is derived from the sum of the Feature estimates, which are the effort required to implement each Feature that contributes to the Epic, also expressed in story points. The Feature estimates are aggregated back into the Epic estimate as part of the lean business case to provide a realistic and data-driven projection of the cost and duration of the Epic.

References:

Lean Business Case - Scaled Agile Framework

Epic - Scaled Agile Framework

Feature estimates are aggregated back into the Epic estimate as part of …

A measurement that can help drive Value Stream innovation and improvements is the percentage of Customers activating the product. This metric indicates how many Customers are actually using the product after acquiring it, and how well the product meets their needs and expectations. A high percentage of Customers activating the product means that the product delivers value and solves a problem for the Customers, and that the Value Stream is aligned with the Customer-centric mindset. A low percentage of Customers activating the product means that there is a gap between the product offering and the Customer demand, and that the Value Stream needs to innovate and improve the product design, delivery, and marketing.

References:

Value Stream KPIs - Scaled Agile Framework

The Four Most Useful Value Stream Metrics in Software

What is an example of a measurement that can be used to help drive …

Gemba is a Japanese term that means “the real place” or “the place where value is created”. In the context of the CDP, Gemba refers to the practice of going to the source of customer needs and feedback, and observing and learning from them. Gemba is an integral part of Continuous Exploration (CE), which is the first aspect of the CDP that drives innovation and fosters alignment on what should be built. CE involves applying Customer Centricity and Design Thinking to understand and create alignment on new development opportunities, and validating them with customers using hypothesis-driven experiments.

References:

Continuous Exploration: This article from the Scaled Agile Framework explains the purpose, process, and benefits of CE, and how it uses Gemba, design thinking, and lean startup methods to explore the market and customer needs, and define a vision, roadmap, and set of features for a solution.

Gemba Walk: How to Drive Continuous Improvement in Manufacturing with Connected Work: This article from Parsable describes how Gemba walks can help manufacturing leaders and teams identify and solve problems, improve processes, and increase customer value. It also provides some tips and best practices for conducting effective Gemba walks using connected worker technology.

A PI roadmap is a visual tool that illustrates the commitments and forecasts of an Agile Release Train (ART) or Solution Train for the planned and upcoming Program Increments (PIs). One of the activities to create an ARTs PI Roadmap is to provide a list of agreed objectives, which are the SMART goals that summarize the business and technical outcomes that the ART or Solution Train intends to achieve in a PI. The objectives are derived from the features and enablers that are planned and prioritized in the PI Planning event, and they are aligned with the vision, roadmap, and strategic themes of the portfolio. The objectives are used to communicate and track the progress and value delivery of the ART or Solution Train, and to enable alignment and dependency management across multiple ARTs or Solution Trains.

References:

PI Roadmap: This article from the Scaled Agile Framework explains the concept and purpose of the PI Roadmap, and how it can be used to visualize and communicate the near-term deliverables and milestones of an ART or Solution Train.

PI Objectives: This article from the Scaled Agile Framework defines the concept and attributes of PI Objectives, and how they can be used to align and measure the outcomes of an ART or Solution Train.

Outcome metrics are the metrics that measure the impact and value of a product on the customers and the business. Outcome metrics help product managers to guide the evolution of the products by focusing on the desired outcomes and benefits, rather than the outputs and features. Outcome metrics also help product managers to validate the assumptions and hypotheses behind the product strategy, and to iterate and improve the product based on customer feedback and data.

References:

Outcome Metrics - Scaled Agile Framework

5 Essential Metrics for Product Managers

Output vs. Outcome Metrics: What’s the Difference? | ProductPlan

Journey maps are a design thinking tool that help visualize the steps, interactions, and emotions of a user as they go through a process or a service. Journey maps can help redesign work processes by identifying the pain points, opportunities, and gaps in the current state, and by generating ideas for improving the user experience and value proposition in the future state. Journey maps can also help communicate the user needs and expectations to the stakeholders and align them on a common vision and goal.

References:

Journey Maps - Scaled Agile Framework

Journey Mapping 101 | Nielsen Norman Group

Journey Mapping: The Ultimate Guide | Miro

Journey Mapping: How to Create One and Why It’s Important

The BMC is a strategic management tool that lets you visualize and assess your business idea or concept. It consists of nine boxes that represent different fundamental elements of a business, such as customer segments, value propositions, channels, and cost structure. The BMC helps you to design, analyze, optimize, and communicate your business model, and to test and iterate it as you learn from the market feedback. The BMC can be used for any type of business or product, regardless of whether it generates revenue or not, as long as it delivers value to the customers.

References:

Business Model Canvas - Wikipedia: This article from Wikipedia explains the concept and history of the BMC, and describes its nine building blocks and their relationships.

Business Model Canvas: Explained with Examples | Creately: This article from Creately provides a detailed guide on how to create a BMC, with examples and templates for different types of businesses and products.

Business Model Canvas – Download the Official Template: This website from Strategyzer offers the official template and online courses, books, and webinars to master the BMC.

According to the SAFe® Agile Product Management APM (6.0) documents and learning resources, Weighted Shortest Job First (WSJF) is a prioritization model used to sequence work for maximum economic benefit. It is calculated by dividing the cost of delay by the job duration or size. To estimate the cost of delay, three factors are considered: user and business value, time criticality, and risk reduction or opportunity enablement. To estimate the job duration or size, a relative scale such as Fibonacci is used. The highest value in the Fibonacci scale is set as the “ceiling” and the lowest value is set as the “floor”. The items are then scored by comparing them to the ceiling and the floor, and assigning them the closest Fibonacci number. The WSJF score is then obtained by dividing the cost of delay score by the job duration or size score. The items with the highest WSJF score are prioritized first.

References:

WSJF - Scaled Agile Framework

Weighted Shortest Job First (WSJF) | Definition and Overview - ProductPlan

Weighted Shortest Job First - Open Practice Library