Practice Lexicon

Methods & Frameworks

211 concepts from agile methods, innovation and strategy — practically explained.

Scrum 19

Iterative product development with defined roles, events and artifacts.

Specific conditions that must be met for a user story to be considered complete. Foundational document from 2001 with 4 values and 12 principles. Regular backlog grooming: clarifying, estimating, prioritizing, splitting items. Graphical representation of remaining work over time. 15-minute sync event: What was done? What is planned? Any impediments? Shared quality standard: When is a backlog item truly finished? Large user story, too big for a single sprint -- decomposed later. Sum of all completed items at sprint end -- must be 'Done' and releasable. Prioritized list of all known requirements -- the single source of work. Accountable for maximizing product value through backlog management. Team reflection: What went well? What to improve? What actions to take? Iterative framework for complex product development with defined roles, events and artifacts. Servant leader supporting the team in applying Scrum and removing impediments. Fixed timebox of 1-4 weeks producing a potentially shippable product increment. Inspection of the product increment with stakeholders -- demo, feedback, backlog adaptation. Relative estimation unit for effort and complexity -- abstract, not in hours. Fixed maximum time duration for an activity -- when time is up, you stop. Requirement from the user perspective: 'As a [role] I want [feature] so that [benefit]'. Average story points per sprint -- used for forecasting, not comparison.

Kanban 20

Flow-based work with WIP limits and pull principle.

Impediment preventing further work -- must be addressed immediately. Constraint in the workflow -- the slowest point determines overall pace. Visualization of WIP, lead time, and throughput over time. Time from work start to completion -- actual processing time. Operative team level: How do we work on our tasks? Coordination level: How do teams align with each other? Strategic portfolio level: Which initiatives do we pursue? State of optimal, continuous workflow without interruptions. Ratio of value-adding time to total lead time. Japanese for 'change for the better' -- continuous improvement. Pull-based workflow system with visualization, WIP limits, and continuous improvement. Visual workflow representation with columns for each process step. Total time from customer request to delivery -- including wait times. Fundamental law: Lead Time = WIP / Throughput. Plan-Do-Check-Act: Iterative improvement cycle for processes and products. Work is pulled when capacity is available -- not pushed. Forecast of how long items typically take to complete. Number of completed items per time unit. Maximum number of concurrent tasks per column -- prevents overload. Number of started but not yet completed tasks.

Design Thinking 17

User-centered innovation through empathy, ideation and prototyping.

5-day process for problem-solving: Understand, Sketch, Decide, Prototype, Test. Human-centered innovation approach: Empathize, Define, Ideate, Prototype, Test. Whether customers actually want the offering -- one of three innovation filters. Three innovation filters: Do customers want it? Is it viable? Is it feasible? Thinking mode: opening possibilities, generating many options. Process model: divergent-convergent for both problem AND solution. First Design Thinking phase: understanding users through observation. Visualization of user perspective: Says, Thinks, Does, Feels. Whether the offering is technically and organizationally feasible. Question format: 'How might we solve [problem] for [user]?' Design approach that puts user needs at the center. Creative phase for generating many ideas -- quantity over quality. Deep understanding about connections -- more than information. Fictional, representative user type based on research. Focused problem statement: [User] needs [need] because [insight]. Early, simplified version of a product or service for testing concepts. Quick, low-cost realization of an idea for testing purposes.

Lean Startup 23

Hypothesis-driven product development with Build-Measure-Learn.

Comparing two variants with real users to identify the better one. Core Lean Startup cycle: Build, Measure, Learn. Manually delivered service intended for later automation. Structured test of a hypothesis with clear success criteria. Announcing a feature or product without building it -- measuring interest. Testable assumption about users, problems, or solutions. Testable assumption about customers, market, or business model. Work method where assumptions are explicitly stated and systematically tested. Framework for measuring innovation progress beyond traditional KPIs. One cycle of the Build-Measure-Learn loop. The most important metrics measuring success or progress. Methodology for product development under uncertainty: Build-Measure-Learn as core cycle. Fundamental assumption on which the entire business model is based. Cyclical process: Act, Observe, Reflect, Adapt -- then repeat. Minimum Viable Product -- smallest version to test and learn. Decision to stay the course because data supports the current direction. Strategic direction change based on validated insights. Structured decision: change course or stay the path -- based on data. State where a product satisfies a real customer need. The most critical assumption that should be tested first. Test with fake product (landing page, button) to measure demand. Insights confirmed through experiments -- not opinions. Product appears automated but is manually operated behind the scenes.

Business Model 54

Business model analysis, canvas methodology and validation.

Principle: Think through the business model first, then develop the product. Strategic tool with 9 building blocks to visualize business models. Changing how an organization creates, delivers, and captures value. Recurring business model patterns proven across different industries. Average cost to acquire a new customer. BMC field: How do we reach customers and deliver value? Platform challenge: users need providers, providers need users. The central value-creating interaction that a platform enables. Established companies investing in startups or building own ventures. BMC field: What costs arise from operating the business model? Expected or desired benefits and outcomes that customers seek. Visualization of all customer touchpoints with the organization over time. Problems, risks, or obstacles customers experience in getting their jobs done. Type of relationship a company establishes with its customer segments. BMC field: Different customer groups with distinct needs. First customer group to accept a new product -- risk-tolerant. Collection of initiatives to optimize the existing business. Collection of innovation initiatives with high uncertainty and learning focus. Pricing model: basic version free, premium features paid. Elements of the value proposition that create customer gains. VPC element: positive outcomes the customer seeks. Values, behaviors, and practices that foster innovation in an organization. Funnel model: Many ideas -> few validated concepts -> even fewer scaled ventures. Specific metrics for measuring innovation activities and outcomes. Overview of innovation initiatives by maturity, risk, or strategic relevance. Framework: customers 'hire' products to get a job done. BMC field: Which activities are essential for our business model? BMC field: Strategic partnerships that enable the business model. BMC field: Which assets are essential for our business model? Startup variant of BMC: Problem, Solution, Metrics, Unfair Advantage. Business model that generates more revenue from many niche products than few hits. Total value a customer generates over the duration of the relationship. Platform connecting multiple different user groups. Collection of 55 business model patterns from BMI Lab research at University of St. Gallen. Product becomes more valuable as more users adopt it. Elements of the value proposition that relieve customer pains. VPC element: negative experiences and obstacles of the customer. Business model that creates value by connecting different user groups. Facilitating value exchange between two or more user groups. Evidence that a real customer problem exists and the solution addresses it. Main product cheap, consumables with high margins. The logic of how value is converted into revenue: price, frequency, payer. BMC field: How and for what do customers pay? Pricing model: recurring payment for continuous access. Recurring payments for continuous access instead of one-time purchase. Costs (time, money, effort) incurred when switching to another provider. Costs and mechanisms that make switching harder for customers -- strategically useful. Market sizes: Total Addressable Market, Serviceable Available Market, Serviceable Obtainable Market. Something that cannot be easily copied or bought -- true competitive advantage. Profitability at the unit level: costs and revenue per customer or transaction. BMC field: Why should customers buy from us? Detailed analysis of customer value: Customer Profile + Value Map. Systematic creation of new business units inside or outside an organization. Whether the offering is economically viable -- can it make money?

Strategy 24

Strategic frameworks and decision logics.

Market space without direct competition -- created through new value dimensions. Playing-to-Win element: What capabilities do we need? The capabilities needed to execute the chosen strategy. Systematic collection and analysis of information about competitors and market. Strategic approach: being unique, justifying a price premium. Binary decision at a gate: continue or stop. Communication model: Why -> How -> What. From inside out. Strategic choice: How do we win in chosen markets? Pre-defined conditions under which a project is stopped. Switching costs that bind customers to a provider. Playing-to-Win element: What systems support the strategy? Value of the next-best alternative foregone by a decision. Strategy framework: Aspiration, Where, How, Capabilities, Systems. Fundamental reason for being of an organization -- the 'Why'. Existing markets with intense competition for known customer segments. Distinction: Can a decision be undone? Type-1 vs Type-2 decisions (Bezos). 5 linked decisions: Winning Aspiration, Where to Play, How to Win, Capabilities, Management Systems. Already invested, non-recoverable costs that should not influence future decisions. Framework: Strengths, Weaknesses, Opportunities, Threats. Systematic observation of developments in technology, market, society, and regulation. Sequence of activities through which a product or service gains value. Visualization of the value chain along the evolution of components. Strategic choice: In which markets do we compete? First Playing-to-Win element: What does 'winning' mean for us?

Org Design 32

Structures, models and methods of organizational development.

Frameworks for agility beyond single teams: SAFe, LeSS, Nexus, Spotify. Different philosophies, same challenge. Organization that simultaneously optimizes existing business (Exploit) and develops new ones (Explore). Competence hub for a domain: developing best practices, sharing knowledge, setting standards — without operational ownership. Team with all competencies needed to independently deliver value. Systematic examination of formal structures and lived culture as foundation for organizational development. Visualization of all decision areas and their delegation levels within a team. Card game for clarifying decision authority across 7 levels -- from 'Tell' to 'Delegate'. Team owns the entire value creation process -- from idea to operations. Lewin's method: making driving and restraining forces of change visible and addressing them strategically. Self-organized operating system with roles instead of positions, circles instead of departments, governance instead of hierarchy. Deliberate, planned action to influence a social system. Core concept of organizational development. Unfreeze — Change — Refreeze. Change requires destabilization, then transformation, then stabilization. Behavior is a function of person and environment: B = f(P, E). Change the context, not the person. Organizations as autopoietic systems that operate through communication and decisions, not through people. Dual reporting structure: functional and disciplinary lines. Flexible but conflict-prone without clear decision rules. Organization without fixed hierarchy: loosely coupled units connected through communication and shared purpose. Large-group method: participants set the agenda themselves. Whoever comes are the right people. Planned, systematic change of organizations. Combining structure, culture and process work. Schein's consulting approach: the consultant enables the client to solve problems, rather than solving them directly. Responsible, Accountable, Consulted, Informed. Tool for clarifying roles and responsibilities across teams. Laloux's model of evolutionary organization stages: from Red (power) through Orange (achievement) to Teal (self-management). Leadership concept: leader serves the team and removes impediments. Centralizing cross-functional capabilities (HR, IT, Finance) as internal service provider for the entire organization. Organizational isolation: departments optimize locally instead of for the whole system. Information stops flowing. Governance model based on consent: decisions stand when no one has a paramount objection. Leadership span: how many people report directly to one leader? Determines hierarchy depth and autonomy levels. Model of values and consciousness development: from Beige (survival) through Orange (achievement) to Yellow (integral). Organizational model with Squads, Tribes, Chapters and Guilds. Team autonomy combined with alignment structures. Visualizing system relationships: actors, interactions, feedback loops and delays made visible before acting. Framework for team organization: Stream-Aligned, Enabling, Platform, Complicated-Subsystem. Two fundamental assumptions about motivation: X (control) vs. Y (trust). Teams organized along value streams rather than functions or technologies. Minimizing handoffs and dependencies.

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