With PI objectives, businesses or companies can set achievable, measurable, and attainable goals that they want to achieve within a timeframe. So, it is important for business owners to quantify their project increment objectives to maximize productivity. Hence, the question, ‘’How do business owners quantify the value of PI objectives’’? Becomes imperative.
Program Increment Objectives, also known as PI objectives, are a clearly defined set of achievable and measurable goals that businesses or companies want to achieve within a time-frame.
Meanwhile, it is best to create program increment objectives during the PI event planning process. Within this period, each team in the establishment will be given a chance to have collaborative sessions where they will share their work plans and priorities, which is aimed at increasing the organization’s productivity.
All you Need to Know About PI and its Objectives
A program increment (PI) is a time-framed window that normally lasts between 8 and 12 weeks. The Agile Release Train (ART) provides a comprehensive set of features.
On the other hand, PI objectives are concise business and technical goals that ART intends to actualize within a specified PI. It works like a link connecting the organization’s strategic vision and its daily activities.
As we noted earlier, the PI objectives are designed during the PI event planning processes. It is usually a two-day joint session for different teams to share their goals and priorities as they concern the growth of the organization.
Why do businesses need PI objectives?
There are a number of reasons why businesses need PI objectives. Some of the reasons include but are not limited to:
- They need it to help teams work in line with the organization’s general objectives.
- They also need it because it increases business productivity.
- It helps the organization speed up decision-making due to collaborative efforts.
- It also helps businesses track their progress and productivity rate.
- Time waste is reduced because of the understanding between teams.
How to Write Achievable PI Objective for your Business
Having known what PI objectives are all about and why businesses need them, let’s proceed with a guide on how to write measurable PI objectives for your business.
- Evaluate and understand your organization’s vision and goals for the forthcoming PI.
- Pinpoint features and capabilities that your business intends to achieve in the next PI.
- Design PI objectives that are SMART, customer-oriented, and also have a balance between business and technical objectives.
- Sort your PI Objectives in collaboration with your team in order of priority
- Finally, summarize and share the PI Objective alongside the Agile Release Train.
Generally Accepted Norms for PI Objective
To achieve specific and measurable PI objectives, the following best practices should be considered:. They are:
- Ensure that you involve all the teams during the PI objective creation process.
- As a kind of reminder, ensure that the PI objectives are kept in strategic locations for visibility for all the concerned teams.
- The business should periodically review the PI objectives to ensure that they still align with their specific goals.
- Review and adjust the PI Objectives in line with current reality and development
- Finally, the company can keep learning from previous PI objectives to enable them to achieve the current aims with ease.
How do business owners quantify the value of PI objectives?
Business owners can quantify the value of PI objectives through different means. They include;
1. Revenue Generation
One of the best ways for businesses to quantify the value of PI objectives is to check their revenue generation. If the PI objective was aimed at increasing revenue generation, then the company can check if there is an increment in their revenue within the time frame. If there is increased revenue from sales or other means, then the PI objective was quantified.
2. Reduction in Cost
Another simple way to quantify PI objectives is for businesses to check costs. If the objectives were aimed at reducing the cost of production through energy consumption reduction,. It should be evaluated within the specific period to know if there is a reduction in the production cost. If at the end of the review there is a cost reduction, then the PI objectives were quantified.
3. Customer Satisfaction
If the PI objective is targeted at satisfying the customers,. The business can quantify its program increment objectives by reviewing their customer’s experiences, the number of customers retained, and their ratings. If all these indices are positive, then the organization was able to quantify the objectives.
4. Increased Productivity
Another simple way that businesses can quantify PI objectives is by checking the organization’s productivity rate, especially if the objective was aimed at improving the process and capabilities of the business. If there is an increase in the productivity rate, then the aim has been achieved.
5. Return On Investment (ROI)
This is another yardstick that businesses can use to quantify their PI objectives. If the aim is to achieve an increasing return on investment,. The metrics should be positive when evaluated within a time frame.
6. Profitability of an Investment (Net Present Value)
The net present value of a business can also be used to quantify the PI objectives. If the objective was to increase the profitability of the investment,. Then, the PI objectives can be quantified by checking the worth of the investment within a specific period.
7. Increased Employee
If the PI objective is aimed at scaling up the business, then there would be an increased number of employees to strengthen the workforce. Hence, the evaluation should be centered on the satisfaction and retention of employees.
8. Novel Product
For a PI objective tailored at increasing market share through the release of a new product, the aim should be evaluated within the projected timeframe; if achieved, then the PI objectives have been successfully quantified.
How PI Objectives can Help Increase Productivity
If utilized properly, PI objectives can help increase productivity through the following means:
- It increases productivity by enabling businesses to utilize the SMART (measurable, achievable, relevant, and time-framed) approach.
- It enhances synergy and collaboration within different teams in the organization
- PI objectives bring about proper time management, which is vital for productivity.
- It also brings about specialization within the entire staff.
How To Design Measurable and Attainable PI Objectives
While creating PI objectives is vital, it is more important to focus on how to create measurable and attainable PI objectives. In this section, we are going to show how businesses can create specific and achievable goals. The methods are outlined below:
1. Use SMART Method
One of the best ways to create achievable PI objectives is by employing the SMART (measurable, achievable, relevant, and time-framed) method. Once this method is followed, the objectives can be achieved with ease.
2. The PI Objective Should be in line with the Organization’s Vision
Once the objectives align with the organization’s target, achieving it would be easier since all the efforts would be channeled towards improving already-existing progress in the establishment.
3. The customer’s Satisfaction Should be Prioritized
Since the whole aim is to provide value for your customers, the PI objectives should be focused on ensuring that customers are satisfied and that they get value for their money.
Who Decides the Team PI Objectives Business Value Scoring After Negotiation?
Business owners decide the team’s PI objectives for business value scoring after negotiation. What happens is that within the breakout of the program increment planning session, owners of businesses review, evaluate, and score each team’s objectives in line with their performance.