Organizations should reduce their investment in a product when the product's:
(choose the best answer)
Unrealized Value is very small.
Current Value is very low.
Current Value is very high.
Unrealized Value is very large.
None of the above.
Unrealized Value is the value that could be realized by meeting all potential needs of the customer or user1. It represents the opportunity for growth and innovation. When the Unrealized Value of a product is very small, it means that the product has reached a saturation point in the market, and there is little room for improvement or differentiation. Investing more in such a product would not yield much return, and might even cannibalize the Current Value of the product, which is the value delivered to the customer or user today1. Therefore, organizations should reduce their investment in a product when its Unrealized Value is very small, and focus on other products or opportunities that have higher Unrealized Value
Product A is a big revenue producer; it has:
. High Current Value and Low Unrealized Value.
Product B is a new product with a lot of potential; it has:
. Low Current Value and High Unrealized Value.
Using those two data points and taking a long-term view, which of the options below should you
pursue?
(choose the best answer)
Weight your investment toward Product B; since it has more potential.
Weight your investment toward Product A; you do not want to risk losing customers.
Invest equally in both products.
According to the Professional Scrum Product Owner™ II certification guide1, the Product Owner is accountable for maximizing the value of the product resulting from the work of the Scrum Team. This means that the Product Owner should have a clear vision of the product, understand the needs and desires of the customers and stakeholders, and prioritize the Product Backlog items based on their value and urgency. The Product Owner should also use evidence-based management to measure the value delivered by the product and make informed decisions about the product strategy and direction.
In this question, Product A has a high current value, which means that it is generating a lot of revenue and satisfying the existing customers. However, it also has a low unrealized value, which means that it has little room for improvement or innovation, and may face competition or obsolescence in the future. Product B has a low current value, which means that it is not generating much revenue or satisfying many customers. However, it also has a high unrealized value, which means that it has a lot of potential for improvement or innovation, and may capture new markets or opportunities in the future.
Taking a long-term view, the Product Owner should weight the investment toward Product B, since it has more potential to deliver value in the future. This does not mean that the Product Owner should neglect Product A, but rather balance the investment between the two products based on the expected return on investment and the risk involved. Investing equally in both products may not be optimal, as it may result in underinvesting in Product B and overinvesting in Product A. Weighting the investment toward Product A may not be wise, as it may result in missing out on the opportunities offered by Product B and losing the competitive edge in the market.
References: 1: Professional Scrum Product Owner™ II Certification | Scrum.org
Which of the following are advantages of a Product Goal that is well-understood by the Scrum
Team?
(choose the best three answers)
A Product Goal is not mandatory in Scrum.
It helps the Scrum Team keep focus and they can check any decision against it.
It provides overall direction so Sprints will feel less like isolated pieces of work.
It makes it easier to inspect incremental progress at the Sprint Review.
It helps the Scrum Team to forecast when the entire Product Backlog will be
delivered.
B. It helps the Scrum Team keep focus and they can check any decision against it: A well-understood Product Goal acts as a powerful magnet that propels Scrum teams towards value delivery34. It guides efforts, prioritizes activities, fosters collaboration, and ensures focus on delivering value to customers34.
C. It provides overall direction so Sprints will feel less like isolated pieces of work: The Product Goal provides context to the Product Backlog2. It can be thought of as the ‘why’ we are doing all of this work2. It can be used as the elevator pitch to 'what is the Scrum Team working on?'2.
D. It makes it easier to inspect incremental progress at the Sprint Review: As each Increment is produced, the Product incrementally moves toward the Product Goal2. How that value is incrementally determined is very context-specific2.
The leading revenue-producing product in your portfolio has:
. High Current Value
. Low Unrealized Value
The product has been losing customers for several years and revenues are down. Using those
two data points and the options below, what is the first action you should take?
(choose the best answer)
Increase investment in the product to create greater interest and bring old customers
back.
Maintain the product, but begin reducing investment; seek other opportunities for
future growth.
Drop the price for the product to attract new customers.
Increase marketing for the product.
According to the PSPO II resources, a product with high current value and low unrealized value is in the harvest stage of the product lifecycle1. This means that the product has reached its peak and is facing increasing competition and decreasing customer demand. The best strategy for this stage is to maintain the product quality and customer satisfaction, but reduce the investment in new features or enhancements. The product owner should seek other opportunities for future growth, such as developing new products or exploring new markets23. References:
1: Product Lifecycle Management
2: Product Strategy
3: Evidence-Based Management
How much of the Sprint Backlog must be defined during Sprint Planning?
(choose the best answer)
Enough so the Developers can create a forecast of what they can do during the
Sprint.
All of the potential work. Sprint Planning is not over until 100% of the work is
identified and estimated.
Just enough to understand design and architectural implications.
Just enough tasks for the Scrum Master to be confident in the Developer's
understanding of the Sprint.
The Sprint Backlog is the set of Product Backlog items selected for the Sprint, plus a plan for delivering the product Increment and realizing the Sprint Goal1. The Sprint Backlog is a forecast by the Developers about what functionality will be in the next Increment and the work needed to deliver that functionality into a “Done” Increment2. The Sprint Backlog is a plan with enough detail that changes in progress can be understood in the Daily Scrum2. The Developers modify the Sprint Backlog throughout the Sprint, and the Sprint Backlog emerges during the Sprint. This emergence occurs as the Developers work through the plan and learn more about the work needed to achieve the Sprint Goal2. The Sprint Backlog is not a commitment to deliver a fixed scope of work, but rather a forecast of what the Developers believe they can do in the Sprint3. Therefore, the Sprint Backlog does not need to be fully defined during the Sprint Planning, but only enough so the Developers can create a realistic forecast of what they can do during the Sprint. References: 1: Sprint Backlog, 2: The Scrum Guide, 3: Commitment vs. Forecast
Which of the following statements about the Product Backlog are true?
(choose the best two answers)
The Product Backlog is ordered by the Product Owner.
The Product Backlog should be visible to the Scrum Team and stakeholders.
All Product Backlog items must be expressed as user stories.
All Product Backlog items must be identified before the first Sprint begins.
Only the Product Owner can place items on the Product Backlog.
The Product Backlog represents the input of all stakeholders and eliminates any
need for the Developers to speak to stakeholders.
The Product Backlog is an ordered list of what is needed to improve the product, and it is the single source of work undertaken by the Scrum Team. The Product Owner is responsible for ordering the Product Backlog items by value, risk, priority, and dependencies. The Product Backlog should be transparent and accessible to the Scrum Team and the stakeholders, so that everyone can understand the scope and progress of the product development. Therefore, options A and B are true statements about the Product Backlog.
Option C is not true because the Product Backlog items can be expressed in various formats, such as user stories, use cases, scenarios, or any other way that clearly conveys the intent and value of the item. User stories are a common and useful technique, but not a mandatory one.
Option D is not true because the Product Backlog is not a fixed and complete specification of the product, but rather an emergent and dynamic artifact that evolves over time. The Product Backlog items are refined and clarified by the Product Owner and the Developers throughout the product development process, and new items can be added or removed as needed. The Product Backlog does not need to be fully defined before the first Sprint begins, but only enough to support the first Sprint Planning.
Option E is not true because the Product Owner is not the only source of ideas and requirements for the product. The Product Owner collaborates with the Developers and the stakeholders to discover, validate, and prioritize the Product Backlog items. The Product Owner may delegate the authority to add items to the Product Backlog to others, but remains accountable for the ordering and the value of the Product Backlog.
Option F is not true because the Product Backlog does not replace the communication and collaboration between the Developers and the stakeholders. The Product Backlog represents the input of all stakeholders, but it is not a substitute for direct feedback and interaction. The Developers need to engage with the stakeholders to understand their needs, expectations, and feedback, and to deliver a valuable product increment that meets the Sprint Goal and the Definition of Done. References:
Professional Scrum Product Owner II Assessment
Understanding and Applying the Scrum Framework
Managing Products with Agility
[What is a Product Backlog?]
[Product Backlog Explained]
The smallest product Increment that is valuable enough to release is one that:
(choose the best answer)
Delivers a single new or improved outcome.
Adds a new feature.
Fixes at least one defect.
Delivers all "must do" Product Backlog items.
The smallest product Increment that is valuable enough to release is one that delivers a single new or improved outcome for the customers or users of the product. This is because the outcome is the ultimate measure of value, not the output or the features1. An outcome is a change in behavior, attitude, or situation that results from using the product2. An outcome can be achieved by delivering a single feature, fixing a defect, or improving an existing functionality, as long as it meets the Definition of Done and the Sprint Goal3. Therefore, the best answer is A.
The other options are not correct because:
B. Adds a new feature. This is not a sufficient condition, as a new feature may not deliver a valuable outcome if it is not aligned with the product vision, the customer needs, or the market conditions4.
C. Fixes at least one defect. This is not a necessary condition, as a defect may not affect the value of the product if it is minor, rare, or irrelevant to the customer5.
D. Delivers all “must do” Product Backlog items. This is not a realistic condition, as the Product Backlog is a dynamic and emergent artifact that changes based on feedback, learning, and discovery. There is no fixed set of “must do” items that can guarantee the delivery of value. References: 1: Outcome vs. Output, 2: What is an Outcome?, 3: The Definition of Done, 4: Feature vs. Outcome, 5: Defect vs. Value, : The Product Backlog
You work as a Product Owner for a small company and your Scrum Team employee retention
rate has been falling. Data from exit interviews suggests that the Developers are:
. Frustrated by interruptions and low-value meetings.
. Feel that their work is not "meaningful."
You need to address this quickly, since the cost to train new Developers is very high in a small
organization like yours.
To increase the likelihood of improving the retention rate, what additional measurements should
you consider when determining improvements?
(choose the best answer)
The Innovation Rate, which is the ratio of new work to total work.
The On-Product Index, the ratio of product work to total work.
Employee Net Promoter Scores.
All of the above.
To address the issues of interruptions, low-value meetings, and a lack of meaningful work, it is beneficial to consider a holistic approach that includes all the options provided. The Innovation Rate (A) can help understand the balance between new and routine work, the On-Product Index (B) can indicate how much work directly contributes to the product, and Employee Net Promoter Scores © can provide insights into employee satisfaction and loyalty. Together, these measurements can offer a comprehensive view of areas for improvement
Which of the following might be considered when ordering Product Backlog items?
(choose all that apply)
Dependencies to other products.
Value of Product Backlog items.
Dependencies between Product Backlog items.
Cost of delay.
Cost of implementation.
According to the PSPO II guide and Scrum.org competencies, when ordering Product Backlog items, a Product Owner should consider various factors to maximize the value of the work done by the Scrum Team. These factors include:
A. Dependencies to other products: Recognizing dependencies to other products is crucial for the Product Owner to ensure that the Scrum Team is working on items that can be completed and deliver value without being blocked by external dependencies.
B. Value of Product Backlog items: The primary role of a Product Owner is to maximize the value delivered by the Scrum Team, and ordering items based on their value is a fundamental aspect of this responsibility.
C. Dependencies between Product Backlog items: Understanding and managing dependencies between Product Backlog items helps in planning Sprints more effectively, ensuring that the team is working on items in a logical sequence.
D. Cost of delay: The cost of delay is a critical economic factor that influences the ordering of Product Backlog items. Items that would result in a higher cost if delayed should be prioritized.
E. Cost of implementation: While value maximization is the goal, the cost of implementation cannot be ignored. Balancing the cost and the expected value is essential for effective Product Backlog management.
These considerations are in line with the Scrum.org Professional Scrum competencies, particularly under 'Managing Products with Agility', where it's emphasized that Product Owners should have a deep understanding of market value, product feasibility, and the importance of making trade-offs to maximize value.
As an investor or shareholder, which of the following measures might give you insight about
whether a product is delivering value?
(choose all that apply)
Revenue per Employee.
Market Share.
The average selling price as compared to close competitors.
Product profitability.
The weekly velocity of the Developers.
A, B, C, and D are correct because they are all measures of the value that a product delivers to the customers and the organization1. Revenue per Employee indicates the efficiency and productivity of the product development2. Market Share shows the competitive advantage and customer satisfaction of the product3. The average selling price as compared to close competitors reflects the perceived value and quality of the product4. Product profitability measures the financial return and viability of the product5. E is incorrect because the weekly velocity of the Developers is not a measure of value, but a measure of output and capacity. Velocity does not indicate whether the product is meeting the needs and expectations of the customers and the stakeholders.
As a Product Owner you become aware that the quality assurance criteria, defined in the
Definition of Done, were not met for the latest Increment. Which of the following statements are
true?
(choose the best four answers)
The next Sprint may be interrupted when quality issues are encountered.
The project manager cannot effectively update the plan.
The indication of progress on the Product Backlog is not transparent.
The Scrum Team should not release the Increment.
The incomplete Sprint Backlog items should be returned to the Product Backlog.
According to the Professional Scrum Product Owner™ II certification guide1, the Definition of Done is a formal description of the state of the Increment when it meets the quality measures required for the product. The Definition of Done creates transparency by providing everyone a shared understanding of what work was completed and what standards were met as part of the Increment. If the Definition of Done is not met, the Increment is not Done and cannot be released. Therefore, the following statements are true:
A. The next Sprint may be interrupted when quality issues are encountered. This is true because the Scrum Team may have to spend time fixing the quality issues in the previous Increment before working on the new Sprint Backlog items. This may affect the Sprint Goal and the delivery of value.
C. The indication of progress on the Product Backlog is not transparent. This is true because the Product Backlog items that were supposedly Done in the previous Sprint are actually not Done according to the Definition of Done. This means that the Product Owner cannot accurately forecast the release plan and the stakeholders cannot trust the progress reports.
D. The Scrum Team should not release the Increment. This is true because releasing an Increment that does not meet the Definition of Done may compromise the quality, usability, and value of the product. It may also damage the reputation and trust of the Scrum Team and the organization.
E. The incomplete Sprint Backlog items should be returned to the Product Backlog. This is true because the Sprint Backlog items that were not Done according to the Definition of Done are still part of the Product Backlog. The Product Owner should re-order them based on their value and priority and decide when to include them in the next Sprint.
The following statement is false:
B. The project manager cannot effectively update the plan. This is false because there is no project manager role in Scrum. The Product Owner is responsible for managing the Product Backlog and the value delivery, while the Scrum Master is responsible for facilitating the Scrum process and removing impediments. The Developers are responsible for managing the Sprint Backlog and the quality of the Increment.
References: 1: Professional Scrum Product Owner™ II Certification | Scrum.org
A separate Product Backlog is needed for every:
(choose the best answer)
Product.
Scrum Team.
Portfolio.
Program.
All of the above.
According to the Professional Scrum Product Owner™ II certification guide1, a Product Backlog is an ordered list of what is needed to improve the product. It is the single source of work undertaken by the Scrum Team. The Product Backlog is owned by the Product Owner, who is accountable for maximizing the value of the product resulting from the work of the Scrum Team. Therefore, a separate Product Backlog is needed for every product, not for every Scrum Team, portfolio, program, or all of the above. Multiple Scrum Teams can work on the same product and share the same Product Backlog2. A portfolio or a program may consist of multiple products, each with its own Product Backlog3. References: 1: Professional Scrum Product Owner™ II Certification | Scrum.org 2: What is a Product Backlog? | Scrum.org 3: Product Backlog Explained [+ Examples] | Atlassian
The timebox for the Sprint Review is:
(choose the best answer)
Any length of time needed.
At the end of every Sprint.
15 minutes.
4 hours for a 4-week Sprint. Usually shorter for shorter Sprints.
D is correct because the timebox for the Sprint Review is four hours or less for a one-month Sprint, and usually shorter for shorter Sprints1. The Sprint Review is an event where the Scrum Team and the stakeholders inspect the outcome of the Sprint and collaborate on what to do next1. A is incorrect because the Sprint Review is not an open-ended event, but a timeboxed one that respects the attendees’ time and ensures productivity2. B is incorrect because the Sprint Review is not a point in time, but a timeboxed event that has a specific purpose and agenda1. C is incorrect because the Sprint Review is not the same asthe Daily Scrum, which is a 15-minute event for the Developers to synchronize their work1.
What are the attributes of a good Product Vision and Strategy?
(choose all that apply)
It describes how the product compares to competitor products.
It describes who will use the product and what they would like to achieve.
It describes how people will use the product to achieve potential outcomes.
It describes what value means in the context of the product, and how it can be
measured.
A good Product Vision and Strategy should have the following attributes12:
It describes who will use the product and what they would like to achieve. This helps to define the target market, the customer segments, and the user personas, as well as their needs, goals, and problems.
It describes how people will use the product to achieve potential outcomes. This helps to articulate the value proposition, the benefits, and the features of the product, as well as the assumptions and hypotheses that need to be validated.
It describes what value means in the context of the product, and how it can be measured. This helps to establish the objectives, the key results, and the metrics that will guide the product development and evaluation.
It is not necessary for a good Product Vision and Strategy to describe how the product compares to competitor products. This may be part of the market analysis or the competitive advantage, but it is not a core attribute of the Product Vision and Strategy. Moreover, focusing too much on the competitors may distract from the customer needs and the product value. References: 1: Product Vision, 2: Product Strategy
What is typical work for a Product Owner in a Sprint?
(choose the best two answers)
Collaborate with stakeholders, user communities and other Product Owners.
Work with the Developers on Product Backlog refinement.
Attend every Daily Scrum to answer functional questions about the Sprint
Backlog.
Create financial reporting upon the spent hours reported by the Developers.
Update the work plan for the Developers on a daily basis.
As a Product Owner, you are accountable for maximizing the value of the product and the work of the Scrum Team. To do this, you need to collaborate with various stakeholders, user communities and other Product Owners to understand their needs, expectations and feedback, and to align them with the product vision and strategy. You also need to work with the Developers on Product Backlog refinement, which is an ongoing activity to add detail, estimates and order to Product Backlog items. This helps the Developers to understand what is valuable and feasible to deliver in the upcoming Sprints, and to plan and execute their work accordingly. These are typical and essential work for a Product Owner in a Sprint.
The other options are not typical or effective work for a Product Owner in a Sprint. Attending every Daily Scrum is not necessary, as the Daily Scrum is an event for the Developers to inspect their progress and plan their next steps. The Product Owner can attend the Daily Scrum if invited by the Developers, but should not interfere or answer questions that are not related to the Sprint Goal or the Product Backlog. Creating financial reporting upon the spent hours reported by the Developers is not a valuable activity, as it does not reflect the outcome or the value delivered by the product. It also goes against the Scrum values of trust and respect, as it implies that the Developers are not self-managing or committed to their work. Updating the work plan for the Developers on a daily basis is also not a good practice, as it undermines the autonomy and creativity of the Developers, and reduces their ability to inspect and adapt their work based on the empirical evidence. The Product Owner should not tell the Developers how to do their work, but rather focus on what is the most valuable outcome for the product.
References:
Professional Scrum Product Owner™ II Certification
Understanding and Applying the Scrum Framework
Managing Products with Agility
The most important thing a Product Owner can do is:
(choose the best answer)
Determine the release schedule and contents.
Ensure that all stakeholder needs are met.
Function as the single source of truth for all requirements.
Maximize the value delivered by the product.
According to the Professional Scrum Product Owner™ II certification guide1, the Product Owner is accountable for maximizing the value of the product resulting from the work of the Scrum Team. This means that the Product Owner is responsible for defining, ordering, and validating what the Scrum Team works on, and ensuring that the product delivers value to the customers, users, and the organization. The other options are not the most important thing a Product Owner can do, because they are either too narrow (A), too unrealistic (B), or too prescriptive ©. References: 1: Professional Scrum Product Owner™ II Certification | Scrum.org
What might indicate to a Product Owner that they need to work more with the Scrum Team?
(choose the best answer)
People frequently leave the Scrum Team.
They are not working full time with the Scrum Team.
The acceptance criteria for the Product Backlog items do not appear to be complete.
The Increment presented at the Sprint Review does not reflect their expectations.
Option D is the best answer because it indicates that the Product Owner and the Scrum Team are not aligned on the vision, goals, and value of the product. The Product Owner is responsible for maximizing the value of the product and the work of the Scrum Team1. Todo so, the Product Owner needs to work closely with the Scrum Team, communicate the product vision, provide clear and valuable Product Backlog items, collaborate on the Sprint Goal, and inspect and adapt the product based on feedback23. If the Increment presented at the Sprint Review does not reflect the Product Owner’s expectations, it means that there is a gap between what the Product Owner wants and what the Scrum Team delivers. This gap can lead to waste, rework, dissatisfaction, and missed opportunities. The Product Owner should work more with the Scrum Team to ensure that they have a shared understanding of the product and its value proposition, and that they deliver Increments that meet the Definition of Done and the acceptance criteria45.
Option A is not the best answer because it does not necessarily imply that the Product Owner needs to work more with the Scrum Team. People may leave the Scrum Team for various reasons, such as personal, professional, or organizational factors. While the Product Owner should care about the well-being and motivation of the Scrum Team members, and try to foster a positive and collaborative environment, the Product Owner is not accountable for the people management or the team composition1. The Scrum Master is more likely to address the issues that cause people to leave the Scrum Team, such as impediments, conflicts, or dysfunctions.
Option B is not the best answer because it does not necessarily imply that the Product Owner needs to work more with the Scrum Team. The Product Owner is expected to spend enough time with the Scrum Team to provide them with the necessary guidance and feedback2. However, the Product Owner also has other responsibilities, such as engaging with stakeholders, customers, and users, managing the Product Backlog, validating the product value, and aligning the product strategy with the business goals12. The Product Owner does not need to work full time with the Scrum Team, as long as they are available and accessible when needed, and they empower the Scrum Team to make decisions and self-organize .
Option C is not the best answer because it does not necessarily imply that the Product Owner needs to work more with the Scrum Team. The acceptance criteria for the Product Backlog items are the conditions that must be met for the items to be considered done and valuable. The Product Owner is accountable for defining and communicating the acceptance criteria to the Scrum Team1. However, the Product Owner can also collaborate with the Scrum Team and the stakeholders to refine and clarify the acceptance criteria, and to ensure that they are aligned with the Definition of Done and the Sprint Goal . The acceptance criteria for the Product Backlog items may not appear to be complete at the beginning of the Sprint, but they can be refined and updated throughout the Sprint, as long as they do not change the scope or the value of the items. The Product Owner should work with the Scrum Team to ensure that the acceptance criteria are clear, testable, and valuable, but they do not need to work more with the Scrum Team just because the acceptance criteria are not complete at a certain point in time.
References:
1: Product Owner Accountabilities
2: Product Backlog Management
3: Product Value
4: Product Vision
5: Sprint Review
: Scrum Master Accountabilities
: Stakeholders & Customers
: Business Strategy
: Definition of Done
: Product Backlog Refinement
: Sprint Planning
: Sprint Backlog
TESTED 23 Nov 2024
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