Every business owner wants to ensure that their organization is moving in the right direction—delivering value, achieving goals, and staying competitive in a fast-paced market. One of the most effective tools for achieving this alignment is assigning business value to Program Increment (PI) objectives during planning.
In a world where priorities can shift rapidly, assigning business value ensures that teams remain focused on high-impact objectives, driving measurable results and sustainable growth. But why is this practice so critical? Why do business owners take the time to evaluate and assign value to team objectives? The answer lies in clear prioritization, alignment, and measurable impact.
In this blog, I’ll explore why assigning business value to PI objectives is essential, how it drives organizational success, and provide research-backed insights to support its importance.
What Are PI Objectives and Business Value?
PI Objectives are specific goals that agile teams commit to achieving during a Program Increment (typically 8–12 weeks). These objectives provide focus and clarity, ensuring that teams work toward delivering meaningful outcomes.
Business Value, on the other hand, is a ranking or score assigned to these objectives by business owners. It reflects how important each objective is to the organization’s goals, customers, and overall strategy. This value is often assigned on a scale (e.g., 1 to 10) and serves as a guiding metric for prioritization and decision-making.
According to the Scaled Agile Framework (SAFe™), assigning business value is critical to PI planning because it ensures that the work being done directly contributes to the organization’s objectives and customer needs. It’s a way to bridge the gap between strategy and execution.
Why Assign Business Value?
1. Aligning Teams with Strategic Goals
Assigning business value ensures that every team’s efforts are aligned with the organization’s broader strategic objectives. Business owners have a unique perspective on what drives success—increasing customer satisfaction, entering a new market, or improving operational efficiency. By assigning value, they help teams focus on what truly matters, reducing wasted effort on less critical tasks.
Example: A retail business might prioritize objectives related to improving the online shopping experience over internal process improvements because customer satisfaction is a key driver of revenue growth. Research from Forrester shows that a mere 1% improvement in customer satisfaction can result in millions of dollars in additional revenue for large retailers.
2. Prioritizing Work That Delivers the Most Impact
Not all objectives are created equal. Some have a higher potential to drive revenue, reduce costs, or improve customer retention. Assigning business value helps teams understand which objectives have the greatest impact and ensures resources are allocated to the most critical work.
Example: Automating client invoicing in an accounting firm might receive higher business value than redesigning internal reporting tools because it directly improves cash flow and reduces operational bottlenecks. A study by McKinsey & Company found that automating financial processes can reduce manual errors by up to 60% and increase overall efficiency.
3. Fostering Collaboration Between Teams and Leadership
When business owners participate in assigning value, it fosters a culture of collaboration and transparency. Teams gain insight into the organization’s priorities and understand the “why” behind their work. This shared understanding builds trust and improves communication between leadership and teams.
Example: In a coaching business, assigning high business value to objectives related to client retention programs shows teams that leadership values long-term relationships over short-term gains. According to Harvard Business Review, organizations with strong collaboration between leadership and teams are 5.5 times more likely to retain top talent.
4. Driving Customer-Centric Decision-Making
Business value is often tied to customer outcomes. By assigning value to objectives that directly impact customers, business owners ensure the organization maintains a strong customer focus. This approach helps prioritize features, services, or improvements that enhance the customer experience.
Example: A software development team might prioritize objectives for reducing customer-reported bugs because business owners value improving product reliability. A Gartner report states that 89% of companies now compete primarily on customer experience, making customer-focused objectives a competitive necessity.
A Simple Practice with Big Rewards
Assigning business value to PI objectives is more than just a planning exercise—it’s a strategic tool that ensures alignment, prioritization, and measurable impact. By evaluating and assigning value, business owners empower their teams to focus on what truly matters, driving sustainable growth and success.
At Berriault & Associates, we specialize in helping organizations align their teams with strategic goals and deliver real value. From agile evolutions to leadership development, we provide the tools and insights you need to thrive.
Ready to unlock the full potential of your teams? Contact us today at 647-490-7515 or email jberriault@berriaultandassociates.com to learn how we can help your organization succeed.
References
- Scaled Agile Framework (SAFe™) – Business Value in PI Planning.
- Forrester Research – The Impact of Customer Satisfaction on Revenue.
- McKinsey & Company – The Benefits of Automating Financial Processes.
- Harvard Business Review – The Importance of Leadership Collaboration.
- Gartner – The Role of Customer Experience in Competitive Advantage.