Object Mentor Blog: The Magic Funnel

The Magic Funnel

tottinger — Wed, 09 Apr 2008 13:18:00 -0500

At a planning meeting, the developers on the team offer up some amount of work they are able to do. This capacity is termed velocity. The customer part of the team then selects enough user stories to consume all of the offered capacity. This is simple negotiation, but that hardly tells the story. What is happening on the customer side is a magic funnel.

All kinds of stories come pouring into the customer group. Some are from actual users in the field who want improvements to existing features. Some suggest entirely new areas of functionality into which the program could expand to good effect. Some are from the operations group, generally describing ways to make the product more reliable, configurable, or manageable. Some are from the developers who realized that some small changes in code could provide large changed in capability or usability. Some are from external regulatory bodies, some are from quality control, but for the most part they’re all good ideas and many have urgency.

When the magic funnel is working, we pour all these stories into the top, and the thing that falls out the bottom is the single most important, urgent task we could possibly do. When it comes time for a new iteration, we fill in our allotted space with whatever comes out the end of the funnel. Whatever we start doing on Monday, it is the best thing we could possibly start doing. We know that it is true because it came out of the funnel that way.

Sadly, magic funnels are hard to come by. We approximate them with human beings in multi-disciplinary small groups. If we leave the funnel purely in the hands of operations, then operational stories are the first to come out. If we leave the funnel in the hands of marketing people, we tend to do things that are more speculative even though the product users don’t really need them right now. If it’s sales, then whatever will sell more product this month will be the first thing out of the funnel. Give control to customer support and we find ourselves constantly appeasing customers and not moving forward on larger issues. If we leave it to developers, it will tend to turn out those stories that improve the experience of developing the application. Of course the problem is about conflicting perspectives (all of them right!) with competing desires being processed in fixed time.

I’m not an expert in creating magic funnels, though it would be a very interesting direction to take at this point in my agile coaching career. I believe that the answer is ultimately to be found in people working together, well-informed people arguing and debating and even trading favors.

I think that part of the answer is Covey-style prioritizing to select the urgent and important (Q1), then the important items that aren’t urgent (Q2), and holding all unimportant work until there is nothing better to do.

Importance in this case relates to how much the change will affect the future of the product and the company. This is not just a matter of closing a contract or soothing an angry customer. It may be that the future is larger and brighter than our immediate concerns. Immediacy is â€œurgencyâ€, but the leverage to create a more greater future is â€œimportanceâ€. I had to read Covey’s First Things First several times to really understand the difference, as may the kind reader. But I did manage to absorb the fact that until you know what you want your future to be, you don’t know what is important.

But imagine how great it will be when you have established your magic funnel, and the work being assigned to each iteration really is the most important and valuable thing that you could do next. Imagine what it would be like if you really were building the future you would like to live in.

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Sun, 13 Jun 2010 14:45:06 -0500

I’ve never heard of a ‘magic funnel’ so this was an interesting concept- a valuable one at that! Prioritizing is definitely one of the most difficult things to do effectively and efficiently so it’s nice to know I’m not the only one who thinks so.

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