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Definition of Value

A shared set of criteria that states when a feature produces quantifiable benefit for the business or the customer.

Key Points

  • Created and agreed by product owner, stakeholders, and the delivery team.
  • Centers on measurable outcomes (for example, revenue impact, cost reduction, adoption, satisfaction, cycle time).
  • Guides prioritization and release decisions and is used to judge whether a delivered feature truly adds value.
  • Must be clear, testable, time-bound, and reviewed regularly as market and strategy evolve.

Example

An e-commerce team defines value for a "one-click reorder" feature as: increase repeat purchase rate by 8% within 60 days of launch, keep page load under 2 seconds, and achieve at least a 4.3/5 average customer rating for checkout. The feature is considered valuable only if these metrics are met after release.

PMP Example Question

Which statement best describes the Definition of Value in an agile context?

  1. A list of technical acceptance tests for a user story.
  2. An agreement on the outcomes and measures that show a feature delivers business or customer benefit.
  3. The prioritized list of features to be developed.
  4. A schedule of releases and milestones for the product.

Correct Answer: B — Agreement on measurable outcomes that indicate a feature provides value

Explanation: The Definition of Value is the agreed criteria that determine when a feature yields measurable business or customer benefit; it is not the backlog, release plan, or technical acceptance tests.

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