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Mskarin keynote - waking up the zombie


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  • 1. Waking up the Zombie Agile Lithuania, 2013 Mattias Skarin Kanban / Lean coach
  • 2. We are ready Step out from development participate and solve customer problems Take an active part in creating value Mattias Skarin 2
  • 3. Is this creating of destroying value? When are you ready? Timebox Mattias Skarin 3
  • 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. 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. Doing business by maximizing value 01:32 6
  • 7. Is all work of high value? Value demand Unvalidated demand Our kanban teams Failure demand False demand 7
  • 8. The problem is not always being fast.. 2013-10-10 Mattias Skarin 8
  • 9. Maximize Value, not Output Henrik Kniberg 9
  • 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. 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. 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. 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. Samples $1billion in sales. Parrot cages Mattias Skarin 14
  • 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. A shift in economical thinking 00:33 16
  • 17. Value of using Agile Analyze Implement Ship Trad Agile ROI Analyze Agile Implement Ship Time Trad Mattias Skarin 17
  • 18. Value of fast feedback Analyze Implement Ship Minimum viable product ROI Agile utilizing fast feedback Agile Time Trad Mattias Skarin 18
  • 19. Three economic models Economy of Scale Economy of Flow Product development economy In which one are you operating? Mattias Skarin 19
  • 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. Economy of product development Revenue Mattias Skarin 21
  • 22. Danger of early filtering Revenue Keep only ”likely” business cases Ideas 22
  • 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. Mattias Skarin 24
  • 25. Management challenge: Every decision represents a tradeoff Flow/Value Cost Optimize for costs = drive value out Mattias Skarin 25
  • 26. Driving development through passion 00:33 26
  • 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. 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. 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. How do you train a PO in one day? 2013-10-10 Mattias Skarin 30
  • 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. 3. Market – ”I ask for a suit but all I get is a lousy T-Shirt” IT Black box Mattias Skarin ?? 32
  • 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. Spotting candidates in inflow 2013-10-10 Mattias Skarin 34
  • 35. Market feedback - After another year 3% 2% Happy! (Customer + Us) Dev rework Customer rework 95% Mattias Skarin * Sample size: 113 35
  • 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. 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. Why care about concepts? • • • • Training tool Prepared conversation A standard Keep the client alive all the way Mattias Skarin 38
  • 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. Example recipe from a multi team scenario: Enterprice kanban + Concepts + Passion = More fun, Better products Mattias Skarin 40
  • 41. Lead time new products 350 300 250 200 150 100 50 0 Mattias Skarin 41
  • 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. ”I didn’t order that” Business Development Release Business Before Today Business Development Release Mattias Skarin 43
  • 44. Further reading & section examples 2013-10-10 Mattias Skarin 44
  • 45. ROI and project budgeting 00:33 45
  • 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. 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. 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. When is the right time? 00:33 49
  • 50. When is the right time to release? Economic Return Value Goldplating? Release window? Feature completion Time 2013-10-10 Mattias Skarin 50
  • 51. But the most interesting part.. Agree on economic idea Sales Mattias Skarin Consultancy Product owners Teams 51
  • 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. Summing up 01:32 53
  • 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. Less hierarchy & coordination is needed .. more fun .. better products 2013-10-10 Mattias Skarin 55
  • 56. Always a good investment Understanding value Fast feedback Quality in every step Telling why Mattias Skarin 56
  • 57. Now – go practice! ”The definition of insanity is doing the same thing over and over again, expected different results” - Einstein 57