Introduction to Real Options through the Product Backlog
summary
Argues that a product backlog should be treated as a set of real options and ordered to maximize the value of information rather than simple priority. Uses industry data (only ~20–25% of built features are used; pruning often removes ~50% of backlog) and historical failure (DOD 2167A) to support pruning and removal during refinement. Presents a procurement system example where releasing without a cancel button reduced errors, sped operations, and likely cut development cost roughly in half, illustrating that refinement should focus on removing items, not adding them.
AI-written summary · about
chapters (10)
- 0:00Introduction
- 1:45What are real options?
- 10:21Real options in business
- 14:42Waterfall and lost options
- 18:36Waste in software
- 22:33Minimizing waste with options
- 27:15Prioritizing backlog items
- 31:50Scrum and option value
- 36:29Case study and example
- 42:52Key takeaways
related talks
18mEffective backlog prioritisation for company happiness
32mLearning from industry: Product Management practices for the win
50mFree your mind and the rest will follow - delete your backlog
44mOutcome-based Product Planning
26mFeatures Versus Futures
36mOk, I’ve Burned My Roadmap and My Backlog. Now What? Lean Product Management
42mBuilding Powerful Roadmaps
42mWhen to Abandon a Product