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ROI Optimization

5 minutes 5 Questions

ROI (Return on Investment) Optimization involves the product owner strategizing to maximize the return on investment for the product. This includes making decisions considering factors such as cost, value, risk, and market trends. The product owner has to prioritize the product backlog items that c…

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PSM I - ROI Optimization Example Questions

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Question 1

Scenario: You are stepping into an existing project as a new Scrum Master. The previous Scrum Master was focused on aggressive development to drive ROI, but this led to the team’s burnout and turnover. How would you handle this situation moving forward?

Correct Answer: Advocate for a sustainable development pace and show how long-term productivity generates a favorable ROI.

Starting from the basis that one of the pillars of the Agile and Scrum methodology is to develop software in a sustainable way, it is then clear that 'Advocate for a sustainable development pace and show how long-term productivity generates a favorable ROI' is the most appropriate answer. This approach could solve the situation because, instead of pressuring the team to work at an unsustainable pace, which clearly was a mistake made by the former Scrum Master, advocating for a sustainable development pace respects the team's capacity, reduces burnout and turnover, and ultimately results in steady, reliable productivity and a favorable return on investment. The other answers: 'Continue with the aggressive development hoping to achieve a high ROI quickly', 'Fire the existing team and hire a new one', and 'Increase team’s working hours to meet ROI goals', go against the principles of respecting the team's work-life balance, minimizing stress and promoting sustainable development, thereby they are incorrect.

Question 2

Your team's productivity is high, but the ROI is not as expected because of the heavy reliance on third party tools. What should be your approach as a Scrum Master?

Correct Answer: Collaborate with the Product Owner to review and prioritize backlog items considering the cost and value of third-party tool usage.

The correct answer involves collaborating with the Product Owner to assess the value versus the cost of third-party tools, integrating this assessment into the backlog prioritization process. This approach leverages the principles of Scrum - openness, and collaboration, focusing on delivering value efficiently. The wrong answers involve actions that either do not consider the value perspective, focus on reducing velocity (which doesn't directly address ROI issues), propose an inflexible shift to in-house development potentially increasing costs and time to market, or misinterpret the purpose of the Sprint Review meeting.

Question 3

Your team has managed to deliver high-quality work but the returns are minimal. Your task as a Scrum master is?

Correct Answer: Work closely with the Product Owner to reassess the Product Backlog for value maximization and alignment with stakeholder needs.

As a Scrum Master, facilitating value maximization is crucial, which involves regularly inspecting and adapting the Product Backlog in collaboration with the Product Owner and stakeholders. Wrong answers touch on relevant topics, such as team development and stakeholder feedback, but miss focusing on working with the Product Backlog for value, which is the core of driving returns in Scrum.

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