Maximizing value

Value is a word being heard a lot in Scrum and other agile environments. The Scrum Guide mentions “value” no less than 16 times, in the context of creating or extracting value from an activity, product, or Increment. However, it does not define what “value” really is. Although different definitions of “value” may be given, the simplest way to define it is by arguing from first principles.

Axiom

Every business organization’s primary objective is to increase revenue and reduce costs.

It does not matter what domain or business area the organization is involved in; the fact is that to survive as a business entity, its costs must not exceed its revenue. This applies to charities and non-profits, as well as large commercial businesses. Charities still have capital and operational expenditure, and these costs must be covered if the charity wants to continue helping people.

This means that, ultimately, every activity...