The “business value” of government

Agile delivery approaches focus on maximizing business value rather than blindly adhering to pre-determined schedule and scope milestones. On the definition of “business value” the agile literature is appropriately vague, for business value is defined differently in different types of organizations. I would even argue that it is necessarily different in every organization – each company, for example, is trying to build a unique competitive advantage, and results that contribute to that advantage can be valuable (“net” value, of course, would have to consider other factors as well). A publicly held company needs to maximize shareholder value; a closely-held private company values … well, whatever the owners value. A nonprofit values mission accomplishment. What does the government value and how does it measure value?

The answer is not obvious. Mission accomplishment is certainly valued. But different agencies have different missions and for some agencies measuring mission accomplishment is difficult (James Q. Wilson’s book Bureaucracy is great reading on the topic of agency missions). If the Department of Homeland Security values keeping Americans safe, how can it measure how many Americans were not killed because of its actions? In an agile software development project, how can we weigh cost against that sort of negative value to determine which features are important to build?

To make matters more complicated, the government values many things besides mission accomplishment. Controlling costs, obviously. Transparency to the public and to oversight bodies. Implementation of social or economic goals (small business preferences, veterans preferences, etc.). Auditability – evidence that projects are following policies. Fairness to any business that wants to bid on a project. Security, which in the government IT context can extend to keeping the entire country safe. And through appointed political agency leadership, political goals can also be a source of value. Each of these values may add cost and effort to a project.

To maximize business value, we must consider all of these sources of value. If we limit ourselves to the value of particular features of our software, we are missing the point. Rather, as IT organizations in the government, we need to self-organize to deliver the most value possible, given all of these sources of value. The government context determines what is valuable. What we must do is find the leanest, most effective way to deliver this value. This is no different from the commercial sector – only the values are different.

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