Waking up the Zombie
Agile Lithuania, 2013

Mattias Skarin
Kanban / Lean coach
www.crisp.se

http://blog.crisp.se/mattiass...
We are ready
Step out from development participate and solve
customer problems
Take an active part in creating value

Matt...
Is this creating of destroying value?
When are
you ready?

Timebox

Mattias Skarin

3
How we plan

Build quality in:
Never pass bad quality forward

Specify

Design

Develop

...

Test

Design

Develop

...

...
Traditional way to start a business

Bla blah..

Get funding
(build impressive
business case)

Mattias Skarin

Build big
s...
Doing business by
maximizing value

01:32

6
Is all work of high value?

Value demand

Unvalidated
demand

Our kanban teams

Failure demand

False demand

7
The problem is not always being fast..

2013-10-10
Mattias Skarin

8
Maximize Value, not Output

Henrik Kniberg

9
Are you shipping things of value?
Features and functions used in a typical system
Half of the stuff we
build is
never used...
Danish IT og Telestyrelsen
2007 Danish public sector report
Between 60 – 70% of all public ITprojects in Denmark fail due ...
Fast feedback!

Delivery frequency = Speed of learning
Stakeholders

Feedback
and
Requests

Demos
and
Releases

It is not ...
Better than #noestimates –Testing
market hypothesis
We know what the
right thing is, let’s
build it

Validate hyphothesis ...
Samples

$1billion in sales.

Parrot cages

Mattias Skarin

14
Do I need to care?

“Apple disrupted the market
by redefining the smartphone and
attracting developers to a closed,
but ve...
A shift in economical
thinking

00:33

16
Value of using Agile
Analyze
Implement

Ship
Trad
Agile

ROI

Analyze

Agile

Implement
Ship

Time

Trad

Mattias Skarin

...
Value of fast feedback
Analyze
Implement
Ship

Minimum
viable
product

ROI

Agile utilizing
fast feedback

Agile

Time

Tr...
Three economic models

Economy of Scale

Economy of Flow

Product
development
economy

In which one are you operating?

Ma...
"All we are doing is looking at the time
line, from the moment the customer gives us an
order to the point when we collect...
Economy of product development
Revenue

Mattias Skarin

21
Danger of early filtering

Revenue

Keep only ”likely” business cases

Ideas

22
“G.M.’s biggest failing, reflected in a clear pattern
over recent decades, has been its inability to strike
a balance betw...
Mattias Skarin

24
Management challenge:
Every decision represents a tradeoff

Flow/Value

Cost
Optimize for costs = drive
value out

Mattias...
Driving development
through passion

00:33

26
Let me ask some questions..
Do the best ideas arrive from product management/product
owner who tells us what do develop?
I...
Concept name:

Created by:

Impact:

(how do you want to improve the world of the end user? Use a comic strip to illustrat...
Big idea

Concept owner

Happy client
Team

Release
Function

The person passionate about the idea
takes it all the way to...
How do you train a PO in one day?

2013-10-10
Mattias Skarin

30
Situations where concepts helped
1. PO Overload

2. Sprints – but lack of overview
in multi team situations..

 Prepare m...
3. Market – ”I ask for a suit but all
I get is a lousy T-Shirt”

IT Black box

Mattias Skarin

??

32
Context - 2 departments / 6 functions
B2B
customers

Marketing

Development

Change
management

Operations

3 Market units...
Spotting candidates in inflow

2013-10-10
Mattias Skarin

34
Market feedback - After another year
3%

2%

Happy! (Customer + Us)
Dev rework

Customer rework

95%

Mattias Skarin

* Sa...
A concept answers three questions
(mandatory sections)
• What is the impact?
• What can be traded away?
• What bare necess...
Why can concepts help you with?
• Avoid requirement inflation
• Illuminate factors outside IT that will cause story
to bre...
Why care about concepts?
•
•
•
•

Training tool
Prepared conversation
A standard
Keep the client alive all the way

Mattia...
Creating a concept
1. Meet

Development

Business

2. Agree on what key information section the concept
should contain. Ho...
Example recipe from a multi team scenario:

Enterprice kanban + Concepts + Passion =
More fun, Better products

Mattias Sk...
Lead time new products
350

300

250

200

150

100

50

0
Mattias Skarin

41
Lead time - per quarter
180
160
140

2X

120
100
80
60

40
20

0
jul12-sept12

Mattias Skarin

oct12-dec12

jan13-mar13
42
”I didn’t
order that”

Business

Development

Release

Business

Before
Today

Business

Development
Release

Mattias Skar...
Further reading & section examples
crisp.se/concepts

2013-10-10
Mattias Skarin

44
ROI and project
budgeting

00:33

45
No ROI per project?

1.
2.
3.

Mattias Skarin

Don’t use costs for quotation, use market value
Just split IT costs evenly
...
3. Pay by time you are occupying flow
40d

15d

45d

Total: 100d
Customer A

40d/100d = 40%

Customer B

15d/100d = 15%

C...
Same but simpler. Using portfolio WIP
Funding
Customer A

Dev

Verify

Done

1/3

Customer C

Design

1/3

Customer B

New...
When is the right
time?

00:33

49
When is the right time to release?
Economic Return

Value
Goldplating?
Release window?

Feature
completion

Time
2013-10-1...
But the most interesting part..

Agree on economic idea

Sales

Mattias Skarin

Consultancy

Product
owners

Teams

51
My challenge to you
Will setting the release date late and release when
product is cool (not just good enough) produce bet...
Summing up

01:32

53
If we create a shared view of..
• How our economic engine works
• How we make tradeoffs

Across functions
Sales

Product
m...
Less hierarchy & coordination is needed

.. more fun
.. better products
2013-10-10
Mattias Skarin

55
Always a good investment
Understanding value
Fast feedback
Quality in every step
Telling why

Mattias Skarin

56
Now – go practice!

”The definition of insanity is doing the same thing over and over
again, expected different results”
-...
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Mskarin keynote - waking up the zombie

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Transcript of "Mskarin keynote - waking up the zombie"

  1. 1. Waking up the Zombie Agile Lithuania, 2013 Mattias Skarin Kanban / Lean coach www.crisp.se http://blog.crisp.se/mattiasskarin mattias.skarin@crisp.se
  2. 2. We are ready Step out from development participate and solve customer problems Take an active part in creating value Mattias Skarin 2
  3. 3. Is this creating of destroying value? When are you ready? Timebox Mattias Skarin 3
  4. 4. How we plan Build quality in: Never pass bad quality forward Specify Design Develop ... Test Design Develop ... Test What really happens Specify Mattias Skarin 4
  5. 5. Traditional way to start a business Bla blah.. Get funding (build impressive business case) Mattias Skarin Build big solution Who’s gonna need it? 5
  6. 6. Doing business by maximizing value 01:32 6
  7. 7. Is all work of high value? Value demand Unvalidated demand Our kanban teams Failure demand False demand 7
  8. 8. The problem is not always being fast.. 2013-10-10 Mattias Skarin 8
  9. 9. Maximize Value, not Output Henrik Kniberg 9
  10. 10. Are you shipping things of value? Features and functions used in a typical system Half of the stuff we build is never used! Always 7% Never 45% Often 13% Sometimes 16% Rarely 19% Sources: Standish group study reported at XP2002 by Jim Johnson, Chairman Danske IT og Telestyrelsen 10 10 10
  11. 11. Danish IT og Telestyrelsen 2007 Danish public sector report Between 60 – 70% of all public ITprojects in Denmark fail due to budget-or time-slippage and wrong estimates The projects that runs well contains up to 60% not needed functionality, when done – typically caused by wrong requirement specs and changed needs Mattias Skarin 11
  12. 12. Fast feedback! Delivery frequency = Speed of learning Stakeholders Feedback and Requests Demos and Releases It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change. Development team Charles Darwin 12
  13. 13. Better than #noestimates –Testing market hypothesis We know what the right thing is, let’s build it Validate hyphothesis (no product yet!) Build product Mattias Skarin 13
  14. 14. Samples $1billion in sales. Parrot cages Mattias Skarin 14
  15. 15. Do I need to care? “Apple disrupted the market by redefining the smartphone and attracting developers to a closed, but very powerful ecosystem.” Stephen Elop, Nokia CEO, 2011 Mattias Skarin 15
  16. 16. A shift in economical thinking 00:33 16
  17. 17. Value of using Agile Analyze Implement Ship Trad Agile ROI Analyze Agile Implement Ship Time Trad Mattias Skarin 17
  18. 18. Value of fast feedback Analyze Implement Ship Minimum viable product ROI Agile utilizing fast feedback Agile Time Trad Mattias Skarin 18
  19. 19. Three economic models Economy of Scale Economy of Flow Product development economy In which one are you operating? Mattias Skarin 19
  20. 20. "All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.“ - Taiichi Ohno Mattias Skarin 20
  21. 21. Economy of product development Revenue Mattias Skarin 21
  22. 22. Danger of early filtering Revenue Keep only ”likely” business cases Ideas 22
  23. 23. “G.M.’s biggest failing, reflected in a clear pattern over recent decades, has been its inability to strike a balance between those inside the company who pushed for innovation ahead of the curve, and the finance executives who worried more about returns on investment.” New York Times, Dec 2008 Rick Wagoner GM Chief Executive 23 Mattias Skarin 23
  24. 24. Mattias Skarin 24
  25. 25. Management challenge: Every decision represents a tradeoff Flow/Value Cost Optimize for costs = drive value out Mattias Skarin 25
  26. 26. Driving development through passion 00:33 26
  27. 27. Let me ask some questions.. Do the best ideas arrive from product management/product owner who tells us what do develop? It’s cool to be fast but.. How are you learning if what you are producing (so fast) is of value to customers? ”I don’t have time to to this” .. so how many % of your released features actually sell? Can development in multi team scenario happen without Project managment or Product Owners? Mattias Skarin 27
  28. 28. Concept name: Created by: Impact: (how do you want to improve the world of the end user? Use a comic strip to illustrate) Date: GUI idea Experienced advantages, per role or customer segment (what not to comprimiizeaway) Surprice Productfeatures tradeoffs (the most important) (wowfactor) Linear functions (the more the merrier) Basic Market size (estimation) Why do it? (from a market perspective) Grab new customer > 1’’ 300’ – 1’’ 100 ’– 300’ 0 – 100’ Browser support (versions we need to be compatiible with) Firefox IE Safari Chrome Mobile dev. Keep customer Stay on market Expend customer Be more effective Other(what: 28
  29. 29. Big idea Concept owner Happy client Team Release Function The person passionate about the idea takes it all the way to happy client There is no handover 2013-10-10 Mattias Skarin 29
  30. 30. How do you train a PO in one day? 2013-10-10 Mattias Skarin 30
  31. 31. Situations where concepts helped 1. PO Overload 2. Sprints – but lack of overview in multi team situations..  Prepare market events  Attend market events [dev] ”I feel I’m a small  Review tenders in the machinery...”  Market brouchours  Visit customers  Write documentation  Fix customer dissatisfaction  Review support tickets  Write user stories  Acceptance test  Redo acceptance test  Be available to developers  Align roadmap with other teams  Meet managers about resource availability ... cog 2013-10-10 Mattias Skarin 31
  32. 32. 3. Market – ”I ask for a suit but all I get is a lousy T-Shirt” IT Black box Mattias Skarin ?? 32
  33. 33. Context - 2 departments / 6 functions B2B customers Marketing Development Change management Operations 3 Market units Sysadmins Component teams & customer configuration Enterprice Kanban Pull flow Mattias Skarin 33
  34. 34. Spotting candidates in inflow 2013-10-10 Mattias Skarin 34
  35. 35. Market feedback - After another year 3% 2% Happy! (Customer + Us) Dev rework Customer rework 95% Mattias Skarin * Sample size: 113 35
  36. 36. A concept answers three questions (mandatory sections) • What is the impact? • What can be traded away? • What bare necessity should be brought to a development conversation Impact What an be traded away? Concept owner works all the way to satisfied customer It’s an A3. 2013-10-10 Mattias Skarin 36
  37. 37. Why can concepts help you with? • Avoid requirement inflation • Illuminate factors outside IT that will cause story to break from customer perspective • ’Split vision’ – not just happy day scenario • Simplify – be concrete very quickly Mattias Skarin 37
  38. 38. Why care about concepts? • • • • Training tool Prepared conversation A standard Keep the client alive all the way Mattias Skarin 38
  39. 39. Creating a concept 1. Meet Development Business 2. Agree on what key information section the concept should contain. How can we have a prepare conversation with development? 1. 4. 2. 5. 3. 6. 2013-10-10 Mattias Skarin 39
  40. 40. Example recipe from a multi team scenario: Enterprice kanban + Concepts + Passion = More fun, Better products Mattias Skarin 40
  41. 41. Lead time new products 350 300 250 200 150 100 50 0 Mattias Skarin 41
  42. 42. Lead time - per quarter 180 160 140 2X 120 100 80 60 40 20 0 jul12-sept12 Mattias Skarin oct12-dec12 jan13-mar13 42
  43. 43. ”I didn’t order that” Business Development Release Business Before Today Business Development Release Mattias Skarin 43
  44. 44. Further reading & section examples crisp.se/concepts 2013-10-10 Mattias Skarin 44
  45. 45. ROI and project budgeting 00:33 45
  46. 46. No ROI per project? 1. 2. 3. Mattias Skarin Don’t use costs for quotation, use market value Just split IT costs evenly Pay by time you are occupying flow 46
  47. 47. 3. Pay by time you are occupying flow 40d 15d 45d Total: 100d Customer A 40d/100d = 40% Customer B 15d/100d = 15% Customer C 45d/100d = 45% 2013-10-10 Mattias Skarin 47
  48. 48. Same but simpler. Using portfolio WIP Funding Customer A Dev Verify Done 1/3 Customer C Design 1/3 Customer B New 1/3 Max 2 per client at any time + A client who delivers small requests gets more done + A client who has good support processes gets more done + Very easy to administrate Mattias Skarin 48
  49. 49. When is the right time? 00:33 49
  50. 50. When is the right time to release? Economic Return Value Goldplating? Release window? Feature completion Time 2013-10-10 Mattias Skarin 50
  51. 51. But the most interesting part.. Agree on economic idea Sales Mattias Skarin Consultancy Product owners Teams 51
  52. 52. My challenge to you Will setting the release date late and release when product is cool (not just good enough) produce better products and higher margin? Do we produce better products without Timebozes? Mattias Skarin 52
  53. 53. Summing up 01:32 53
  54. 54. If we create a shared view of.. • How our economic engine works • How we make tradeoffs Across functions Sales Product management Dev 2013-10-10 Mattias Skarin 54
  55. 55. Less hierarchy & coordination is needed .. more fun .. better products 2013-10-10 Mattias Skarin 55
  56. 56. Always a good investment Understanding value Fast feedback Quality in every step Telling why Mattias Skarin 56
  57. 57. Now – go practice! ”The definition of insanity is doing the same thing over and over again, expected different results” - Einstein 57
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