Some emphasize that product development begins with writing code and that effort transforms into a win. The lingering question for this type of three-part development model is “What is Phase 2?” Some emphasize that product development begins with writing code and that effort transforms into a win. The lingering question for this type of three-part development model is “What is Phase 2?” What is Valued by Gnomes that Code? Many managers track business metrics and project metrics during Phase 2 to forecast the potential to win. What is valued by gnomes that code? Gnomes associate winning with factors that include autonomy, mastery, and purpose. Dan Pink wrote about what motivates individuals in his book Drive. Gnomes can develop autonomy, mastery, and purpose in an environment when there is a moderate amount of volatility, randomness, disorder, and stressors. Gnomes can benefit in a development environment that is characterized by a moderate amount of adventure, risk, and uncertainty. Taleb called this type of environment antifragile. Development Options Taleb wrote ‘The option is an agent of antifragility.’ An agent obtains results. An appropriately designed network continuously synthesizes development options that provide the potential to take action that may result in a favorable gain. When an attractive gain may be realized, options are exercised. Development options: Include tasks that are likely to improve the antifragility of the network during a project Are a response to the question ‘what should the network embrace now to improve the potential to win in the future?’ Are continuously synthesized and exercised during a project within the development network to refine the focus and direction of efforts to generate a win Are consistent with the concept of safe-to-fail experiments that have an asymmetric payoff function (large potential gain, small potential loss) Are exercised, evolve, or expire The capabilities of the network impact the attractiveness of the development options that are generated. To the extent that options are exercised and provide feedback, confidence in their attractiveness tends to increase. Multiple options can be active simultaneously to provide multiple opportunities to win within the network’s current capabilities and within the project’s current constraints. Precursors to Development Options Analysis is a precursor of synthesis. Analysis is a problem solving approach that divides the whole into its constituent parts. Synthesis is a process of connection. A synthesis approach enables one to imagine how several capabilities may work together to produce the desired result. Validation may follow from a combination of decision, action, interaction, and more observations. John Boyd represented these items in his OODA Loop sketch in his final briefing titled “The Essence of Winning and Losing” in 1995. I have expanded Boyd’s notation to represent the interactions of individuals and their efforts during a project. John Boyd’s OODA Loop sketch notation can be expanded to represent the interactions of individuals and their efforts during a project. This illustration includes the representation of simultaneous efforts within a hierarchy and the pursuit of two options simultaneously. The following notation represents synthesizing options and exercising options throughout a development project. Synthesizing many options and exercising attractive development options should occur rapidly throughout a project. ‘Synthesize options’ includes imagining solutions and documenting them. The cloud filled sky background of the ‘exercise option’ portion of this graphic represents the interaction of prototypes with the environment (which includes customers). Designing to Improve the Capability to Synthesize and Exercise Attractive Development Options Optionality can be imp