Seeking value by Michael Ballé at the European Lean IT Summit 2012

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Michael Ballé from Institut Lean France presented « Seeking value »: learning how to learn what customers really want, and how to get it to them.
More Lean IT presentations on www.lean-it-summit.com

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Seeking value by Michael Ballé at the European Lean IT Summit 2012

  1. 1. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, FranceSeeking ValueBy Michael Ballé
  2. 2. Copyright © Institut Lean France 2012Seeking Value Michael Ballé
  3. 3. Copyright © Institut Lean France 2012Lean thinking1. Value2. The value stream3. Flow4. Pull5. Perfection
  4. 4. Copyright © Institut Lean France 2012 Value in IT• Information Systems are increasingly expensive• Legacy makes IS inflexible and costly to change• Project overruns reach “black swan” potential• Users still never happy
  5. 5. Copyright © Institut Lean France 2012 ValueValue = Function / Cost
  6. 6. Copyright © Institut Lean France 2012
  7. 7. Copyright © Institut Lean France 2012Those pesky customers What they say they want ≠What they’re ready to pay for
  8. 8. Copyright © Institut Lean France 2012Because they don’t know themselvesHow I feel about the product right now  Was I right to purchase it?
  9. 9. Copyright © Institut Lean France 2012Function (action) ≠ Feature (tool)
  10. 10. Copyright © Institut Lean France 2012 Understanding value• What does the FULL product/service do for the customer?• What do customers VALUE about the product (or DISLIKE)• At what cost?
  11. 11. Copyright © Institut Lean France 2012Critical To Customer Performance • What do customers value? • How do we express this in technical parameters?
  12. 12. Copyright © Institut Lean France 2012 CTCs change!• Through the product’s life course• As customers learn to use it• As the usage environment changes
  13. 13. Copyright © Institut Lean France 2012 The value challenge FUNCTION FEATURE PERFORMANCE PERFORMANCE Constantly check Translate thisCritical To Customer into productfunctions are in line features with customer within Target behaviour Cost
  14. 14. Copyright © Institut Lean France 2012To make products, first make people 1. Follow the customers 2. Make choices 3. Teach teamwork 4. Set-up a design factory 5. Learn to learn
  15. 15. Copyright © Institut Lean France 20121. Follow the customers
  16. 16. Copyright © Institut Lean France 2012 User complaints• User complaints are users taking the time to educate us about what they value• Every complaint matters – no Pareto thinking• Go to the gemba, ask why? Understand what prompted the user to complain: how did the product/service get between the user and what he/she wanted?
  17. 17. Copyright © Institut Lean France 2012 Product takt time• Pick a tempo• Commit to a product release at that beat NO MATTER WHAT• Only put validated innovations into the proposed product• Learn from customers’ reaction (BUY/NOT BUY)
  18. 18. Copyright © Institut Lean France 2012 Test user valuesCustomer Value Confirmation Confirmed Conclusion type hypothesis method Y/N On CTC Rephrase Critical To Customers
  19. 19. Copyright © Institut Lean France 20122. Make choices
  20. 20. Copyright © Institut Lean France 2012 Chief Engineer: single point accountability• Who is going to capture Critical To Customer• Express this into technical parameters• Be the last arbiter of technical choices, in relation to CTC• Make sure the project keeps on track in terms of schedule, innovation and costs
  21. 21. Copyright © Institut Lean France 2012 Customer segment• Choose a segment• Specific enough to differentiate the offering• Large enough to make a profit• Segment according to usage, draw out a user model
  22. 22. Copyright © Institut Lean France 2012 Frame a concept• What job(s) should the product do for the users?• Find the “yet” contradiction• Zero compromise on the “yet”• Specify targets on the performance radar chart
  23. 23. Copyright © Institut Lean France 2012 Deploy the concept at module level• List new ideas, involve suppliers• Test against standards and fundamentals• Test against concept & user models• Evaluate impact on whole product• Make choices
  24. 24. Copyright © Institut Lean France 2012 Pivot• How do we know we get it right/get it wrong?• When do we need to pivot? What are clear markers to distinguish pivot from mission creep?• What are the tripwires?
  25. 25. Copyright © Institut Lean France 20123. Teach teamwork
  26. 26. Copyright © Institut Lean France 2012 Team clarity• Chief engineer as team leader• Clear in/out frontier – no part timers, incentives to stay to the end• Oobeya (war room)• One member of the team coordinates suppliers
  27. 27. Copyright © Institut Lean France 2012 Solve sticky problems BEFORE development• Bring the team together by solving tricky problems before developing the product• Try alternative solutions, build models, prototypes, simulations• Involve all the technical chain (testers, suppliers, etc.) in evaluating alternate solutions• Let the team build their own internal rules
  28. 28. Copyright © Institut Lean France 2012 Lean design strategyConcept Development Redevelopment Lead-time
  29. 29. Copyright © Institut Lean France 20124. Set up a design factory
  30. 30. Copyright © Institut Lean France 2012 Detailed planning• Once key problems have a solution & architecture is clear• VERY detailed planning, module-based• Plan for interfaces and interactions• Draw a detailed Value Stream Map involving every actor involved
  31. 31. Copyright © Institut Lean France 2012 Work with standards• Typical problems / typical solutions• Seek standard ways of doing things – starting with easy things, such as names, addresses, etc.• Write checklists
  32. 32. Copyright © Institut Lean France 2012 Test the testing culture• The test drives the code: easy to say, hard to do• Are engineers trained to: – Understand they’re in charge of their own quality – Know HOW to test• How automated are testing tools?
  33. 33. Copyright © Institut Lean France 2012 Readiness to go live• Assess schedule against “go live”• Overreact to open problems – find resources or outside expertise quickly• Resist calls to increase scope – drop features that are not CTC and not ready• See and solve teamwork problems early
  34. 34. Copyright © Institut Lean France 20125. Learn to learn
  35. 35. Copyright © Institut Lean France 2012 Self-reflection activitiesDate Problem Cause Countermeasure Status•Learning events during the project: Teardowns Code cleanup Code reviews
  36. 36. Copyright © Institut Lean France 2012Teach and improve standards • Dojos: one-on-one training • Suggestions • Experiments • Constant improvement of checklits
  37. 37. Copyright © Institut Lean France 2012 Check against performance targets• Go to users quickly• Rough and ready builds or prototypes• The code is the gemba
  38. 38. Copyright © Institut Lean France 2012To make things, first make people Experience  Passion  Open mind
  39. 39. Copyright © Institut Lean France 2012 22 & 23 November, 2012 Paris, FranceMore Lean IT videos and presentations on www.lean-it-summit.com

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