Explain the difference between the Sprint Review and the Sprint Retrospective, specifically highlighting the goals of each event and the involved stakeholders.

The Sprint Review and the Sprint Retrospective are two crucial events in Scrum, both occurring at the end of a Sprint, but they have distinct purposes, involve different stakeholders, and focus on different aspects of the product and the team's process. Understanding their differences is essential for maximizing their value and ensuring a smooth and effective Scrum implementation.

The Sprint Review is primarily focused on the product and its increment. Its main goal is to inspect the work completed during the Sprint and gather feedback from stakeholders. This is a collaborative event where the Development Team demonstrates the product increment they have built during the sprint to stakeholders. The Product Owner facilitates the discussion, and the stakeholders provide their feedback on the increment. The stakeholders involved in the Sprint Review typically include representatives from the business, customers, users, or any other individuals with a vested interest in the product. These individuals provide insights on whether the product is meeting their needs and if it’s moving in the right direction. For example, if the team was working on a new shopping cart feature for an e-commerce site, they would demonstrate the functionality to stakeholders, such as marketing or sales staff, and even perhaps some select customers to gather their feedback on the user experience and whether the new feature has met their needs. The Product Owner would work with the stakeholders to understand what they want to see next and how it meets their business needs.

The main output of the Sprint Review is feedback on the product increment which will be used for the Product Backlog and product development. It is not a gate-keeping event, but an opportunity to inspect and adapt the product development direction, based on stakeholder feedback. The Development Team and the Product Owner gain a deeper understanding of the stakeholders’ expectations and adjust the Product Backlog to reflect any changes that need to be made. The stakeholders get a clear idea of the work delivered, progress toward the product goals, and they are involved in shaping the direction of the product. It's a demonstration to gain valuable insight, and is focused on the external product.

In contrast, the Sprint Retrospective is focused on the team and its processes. Its primary goal is for the Development Team to inspect itself, and to plan improvements for the next sprint. The focus of the Retrospective is to look inward and address how they, as a team, can work better, faster and with higher quality. It is an event that is primarily for the Development Team and the Scrum Master. The Product Owner is not typically an active participant, but may attend as an observer if needed, but should not be an active participant. The Retrospective is a safe space where the Development Team can discuss what went well during the sprint, what didn't go well, and what improvements they can implement in the next sprint. For example, if the team found they were not able to deliver the expected work because of a slow review process, they would use the retrospective to identify the problem and figure out ways to streamline their review process.

The key outcome of the Sprint Retrospective is a list of actionable improvements that the Development Team will implement in the next Sprint. This ensures that the team is continuously learning, adapting, and improving its processes. It is not a forum for complaining but rather a forward looking opportunity for the team to find solutions and work better in the next sprint. The improvements, for example, can include a change in the way the team does their daily scrum, or how the team uses their task board, or other process and communication improvements. The retrospective focuses on improving how the team is working together.

In summary, the Sprint Review is external facing, focused on the product increment and gathering feedback from stakeholders. It is about ensuring the product meets their needs and is going in the right direction. The Sprint Retrospective, however, is internal facing and focused on the team’s processes. It aims to improve how the team works together. The stakeholders for the Sprint Review are product stakeholders while the stakeholders for the Sprint Retrospective are the Development Team and the Scrum Master. The Sprint Review produces feedback on the product while the Sprint Retrospective produces action items for process improvement. Both events are vital for the success of a Scrum implementation but serve distinct purposes.