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Results-Only Web Investments
Results-Only Web Investments
Results-Only Web Investments
Results-Only Web Investments
Results-Only Web Investments
Results-Only Web Investments
Results-Only Web Investments
Results-Only Web Investments
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Results-Only Web Investments
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Results-Only Web Investments

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Building websites has gone from a technical service to one that serves to solve well-defined business problems. Gone are the days when everyone had to have a website only because it was expected. …

Building websites has gone from a technical service to one that serves to solve well-defined business problems. Gone are the days when everyone had to have a website only because it was expected. Today customers pay for a reason and for end results. Problem is, most web shops keep selling technical solutions to match feature-oriented requirements, never taking results or business goals, into consideration. As a result, shops are relegated to being specialist subcontractors and it results in projects rarely generating the kind of impact that is expected.

The shift to focusing on results is necessary to beat this trend of failed expectations. Turning from "to the letter requirements"-driven web development to result-only web investments generating tangible benefits may seem like a big leap, but brings advantages to both buyers and sellers. It fosters a culture of unified teamwork across all parties and takes away many of the causes for seller–buyer distrust.

In this talk I will show you how to take the step from focusing on fulfilling irrelevant requirements to talking results with your customers and increasing your customer satisfaction and team happiness at the same time.

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  • 1. Results Only Web Investments Jakob Persson DrupalCon Prague, Thursday September 26th, 2013
  • 2. Introducing me Founder and CEO of Sveyt Co-founded NodeOne Worked with Drupal since 2005 Studied cognitive science and computer science. jakob.persson@sveyt.com http://twitter.com/jakobper http://drupal.org/user/37564
  • 3. Prototypes, develops and builds your product idea and validates market assumptions with Drupal. We are hiring freelancers. Talk to us! jakob.persson@sveyt.com
  • 4. 16%
  • 5. 16% of all web projects are considered “complete successes”
  • 6. only 16% of all web projects are considered “complete successes”
  • 7. 1 out of 6 beers is Czech (Czech beer is awesome) http://www.sxc.hu/photo/1209277
  • 8. 1 out of 6 cars doesn’t crash http://www.sxc.hu/photo/1357729 http://www.sxc.hu/photo/1018876 http://www.sxc.hu/photo/1067693 http://www.sxc.hu/photo/1156584 http://www.sxc.hu/photo/1093472 http://www.sxc.hu/photo/1421209
  • 9. 1 out of 6 pets is actually happy http://www.sxc.hu/photo/1428378 http://www.sxc.hu/photo/1427333 http://www.sxc.hu/photo/1388996 http://www.sxc.hu/photo/1421011 http://www.sxc.hu/photo/1009754
  • 10. "Nobody wants a 1/4 inch drill — what they want is a 1/4 inch hole.” —Theodore Levitt, marketing professor at Harvard
  • 11. Requirements
  • 12. Does it say who the people who we need to involve, engage and reach are? Does it say what the buyer expects the return to be? Does it say why the buyer is spending resources and money on this project?
  • 13. "Delivery plans and requirements documents are often shopping lists of features, without any context that explains why such things are important." – Gojko Adzic, award–winning strategic software delivery consultant
  • 14. http://www.sxc.hu/photo/1004855 18V 3 Ah Li-Ion Rubber grip Nylon wrist strap 1h recharge time 3,000 RPM electric motor Speed chuck “I don’t care! Does it make a fr****** hole?”
  • 15. If so, how can we then build something that successfully brings value to our customers using that??
  • 16. You will leave this room with a method to shift how you manage projects from requirements- oriented to results-only, with happier customers and teams as a result
  • 17. We need to emphasize investment and results, not costs and requirements
  • 18. Poll: Your last project
  • 19. Did everyone involved understand what the intended business results of the project were? Oh, one person! In your last project...
  • 20. Was everyone, buyer and seller, able to communicate clearly and transparently about risks and problems that occured? And another one! In your last project...
  • 21. Did everyone feel that the project was something they could be proud of in terms of achievement, quality and innovation? In your last project... I am not surprised...
  • 22. Did everyone involved understand the definition of a successful project and how success was measured? In your last project... And now it’s her turn!
  • 23. In the end, did the customer get what they needed to address an actual business problem or opportunity? Anyone? :( In your last project...
  • 24. A Story from Reality Fables, myths and project management
  • 25. [slide: WidgetCo HQ] One beautiful spring morning…
  • 26. Here’s the idea!
  • 27. [slide: In front of computer] Susan is researching competitors’ websites.
  • 28. [slide: Stack of documents] The requirements stack up.
  • 29. Bidders call Susan to get the answers they need.
  • 30. Done deal!
  • 31. Milestones are set by date and tied to scope.
  • 32. “What were we thinking?”
  • 33. de·vel·op·er [dih-vel-uh-per] noun: A person that converts coffee into code
  • 34. The team is working to exhaustion.
  • 35. “Where’s the hockey stick?”
  • 36. Was this a success? + The requirements were fulfilled to the letter - Team worked their a**es off - The seller made a loss - The buyer didn't see the results they were hoping for 1 3
  • 37. How did we end up here?
  • 38. Need Requirements and Design Bidding Execution Evaluation Let’s consider five important phases in the project
  • 39. The decision to invest in the the project originates from a need or opportunity that has been identified. ✘ Business goals were not communicated making the project cost-driven. ✘ Being unaware of the business goals made it hard for the team to react to unforeseen problems. ✘ The project was given a way too small budget. Need Requirements and Design Bidding Execution Evaluation
  • 40. A requirement is a capability to which a project outcome should conform and should ideally capture more than just easily observable and measurably aspects. ✘ The requirements focused on the superficial. ✘ The requirements were not relevant to the business goals. ✘ Requirements were written by someone whose expertise skewed them towards the easily definable. Need Requirements and Design Bidding Execution Evaluation
  • 41. The competitive bidding process helps winnow bidders, stimulate competition and procure services at the lowest possible price. ✘ Relying only on a bidding process often tends to make the buyer only look to price, ignoring ability to perform. ✘ Bids rely heavily on software estimation which is hard, if not near impossible. ✘ Optimistic assumptions and estimates put the seller in a “knife to the throat” situation. Need Requirements and Design Bidding Execution Evaluation
  • 42. Project execution is what usually takes most time and deals with directing and managing the project, its assets and its progress. ✘ Designed to make the buyer feel secure, instead it caused much stress, frustration killing motivation. ✘ The inflexible execution prevented the project from gaining from ongoing learning. ✘ The soured relationship undermined trust between parties and chances of project success. Need Requirements and Design Bidding Execution Evaluation
  • 43. In the long term, projects aren’t evaluated based on how well they fulfill the requirements to the letter but how well they have the desired result. ✘ Very few members of the project team were aware of the expected result. ✘ WidgetCo’s project failed to deliver the results the executive sponsors had been hoping for. Need Requirements and Design Bidding Execution Evaluation
  • 44. This is not a rare case.
  • 45. At companies that aren’t among the top 25% of technology users, 3 out of 10 IT projects fail on average http://www.umsl.edu/~sauterv/analysis/6840_f03_papers/frese/ “
  • 46. Lack of user input and involvement http://www.sxc.hu/photo/1099035 User research
  • 47. Incomplete requirements http://www.sxc.hu/photo/504217 Systematic collection of requirements Requirements linked to goals Agency involvement
  • 48. Unrealistic expectations http://www.sxc.hu/photo/704067 Expectations and goals communicated and shared Budget in relation to expectations
  • 49. 70% of the “successful” projects were over budget, over time, or defective in function upon completion http://www.umsl.edu/~sauterv/analysis/6840_f03_papers/frese/ “
  • 50. Is it sustainable? For you? For your customers? For our entire business?
  • 51. + Team worked at an effective pace + The seller made a profit + The buyer saw the results they were hoping for - The requirements were not fulfilled to the letter 3 1 What if we inverted the scoreboard?
  • 52. Let’s change how we view projects
  • 53. Measurable success Results A four-fold change ➊ ➌ ➋ ➍Learning & discovery Investment
  • 54. A change with amazing consequences TRUST Parties expect each other to act and deliver to the best of ability GAIN The project is done on budget, buyer gets value and seller makes a profit RESPECT Parties respect the competence/experience of each other PURPOSE Parties feel this project is worth doing ACHIEVEMENT Parties are proud of being part of the project and achieving its goals
  • 55. What would it be like then…
  • 56. The decision to invest in the the project originates from a need or opportunity that has been identified. ✓ The business goals are being communicated from day one. ✓ The budget is based on the expected return, the project considered an investment clearly linked to the business goals. ✓ There are measurable success criteria the team feels are realistic and which motivate them. Need Requirements and Design Bidding Execution Evaluation
  • 57. A requirement is a capability to which a project outcome should conform and should ideally capture more than just easily observable and measurably aspects. ✓ Requirements are focused, sufficiently high level and relevant to the success criteria. ✓ Requirements are supported by strategic analysis and user research. ✓ Reliance on requirements as a way to control is replaced with reliance on project leadership. ✓ There’s working communication and strong executive support. Need Requirements and Design Bidding Execution Evaluation
  • 58. The competitive bidding process helps winnow bidders, stimulate competition and procure services at the lowest possible price. ✓ Focus on lowest price is replaced by a wish to find the company with best ability to deliver. ✓ Software estimates only serve as input for first stage of planning. ✓ Transparency makes the seller able to offer advice on how to achieve the desired business result. Need Requirements and Design Bidding Execution Evaluation
  • 59. Project execution is what usually takes most time and deals with directing and managing the project, its assets and its progress. ✓ It’s understood that things be more difficult or easier than planned for – learning is expected. ✓ Constant communication helps synchronize expectations between team and executive sponsors. ✓ Continual delivery helps establish trust. ✓ Flexibility fosters high morale as well as a creative atmosphere. Need Requirements and Design Bidding Execution Evaluation
  • 60. In the long term, projects aren’t evaluated based on how well they fulfill the requirements to the letter but how well they have the desired result. ✓ The team understands why the website was designed and built a certain way. ✓ Everyone involved knows what the project’s goals are and what they’re trying to achieve. ✓ Everyone is eagerly waiting for the first results of their efforts to materialize, prepared to rethink, redesign and tweak if necessary. Need Requirements and Design Bidding Execution Evaluation
  • 61. Too good to be true, eh?
  • 62. “Where did all these ideas come from and do they even work?” Let’s see what the research says.
  • 63. Two methods with proven track records Agile Impact Mapping & Effect Mapping www.impactmapping.org scrumshortcuts.com
  • 64. Agile Methods Scrum, FDD, XP, Kanban, DSDM… Some concern projects, some are sets of practices.
  • 65. Family of Agile Methods an inexact timeline 1990 2000 2010 Crystal Scrum Pair Programming XP Continuous Integration TDD Agile Manifesto Lean SD* https://corinna.scorpius.uberspace.de/finding-marbles/wordpress/wp-content/uploads/2012/04/agile-lean-engineering-timeline1.png Kanban for SD* Lean Startup * Software Development
  • 66. Do they work? http://www.infoq.com/news/2012/11/success-agile-projects – David F. Rico, “The Business Value of Using Agile Project Management for New Products and Services”. “An early study of agile project management showed 10% to 20% improvements in revenues, quality, and cycle time, and 54% reductions in costs…”
  • 67. Do they work!? Ya bet they do! http://www.onedesk.com/2013/01/waterfall-vs-agile/ Waterfall Agile Successful Challenged Failed “Agile projects are three times more successful than Waterfall projects.” 14% 57% 29% 42% 49% 9% – 2011 CHAOS Manifesto from the Standish Group
  • 68. http://stackoverflow.com/questions/3001627/agile-when-does-it-work-well-and-when-doesnt-it W aterfall Agile Stay out! Waterfall (predictive) Technologies and requirements are known. Agile (adaptive) Technologies and requirements are partially unknown. Ralph Stacey's complexity matrix
  • 69. Which is best? It depends on the type of project. In my experience, agile is very well suited for Drupal development.
  • 70. “Impact mapping brings usability and speed to proven product and project management strategies, helping them fit better into modern software delivery constraints, and at the same time applying some great ideas from other industries to software delivery” – impactmapping.org Impact Mapping
  • 71. ✓ Facilitate strategic planning to create a big-picture view focused on key business objectives ✓ Facilitate learning through delivery ✓ Help us manage project roadmaps ✓ Represent delivery scope in a way that is easy to evolve to react to changed market opportunities or new knowledge Impact Maps
  • 72. Impact Maps “An impact map is a visualisation of scope and underlying assumptions, created collaboratively by senior technical and business people.” Why? Who? Who? How? How? How? How? What? What? What? What? – Gojko Adzic What? What?
  • 73. Impact Maps Why? Who? Who? How? How? How? How? What? What? What? What? What? What? Business goal Deliverables
  • 74. Effect Maps Effect User Group User Group User Need User Need User Need User Need Feature Feature Feature? Feature Feature Feature Effect Features
  • 75. Effect Maps vs Impact Maps Effect Maps Impact Maps Based on user research, a structured map of goals, end users and their needs, used in interaction design Created in a strategic meeting, a roadmap focusing on impact, used to make decisions regarding scope Helps interaction designers design for end users based on business goals Helps the project focus on the right deliverables to achieve the business goals
  • 76. You’ll do right to learn about both.
  • 77. Usability Testing User Group User Need Feature Persona Wireframe Prototype Who are our users and what do they need?
  • 78. Assumptions SMART Goals Impacts Learn What are our assumptions and what do we need to do to achieve our goals? Why? Who? How? What? What? Actors Build Measure
  • 79. You’re not convinced…
  • 80. "But without price bidding, sellers have no incentive to be cost effective"
  • 81. "But the buyer needs to set up clear milestones, otherwise the project will fail"
  • 82. "Customers don't always know their business needs/goals"
  • 83. Things can be done very differently from how they’re often done
  • 84. Meanwhile, somewhere in Universe “A.k.a ‘the nice universe’”
  • 85. A Much Better Story from Universe Fables, myths and project management 2
  • 86. [slide: WidgetCo HQ] One beautiful spring morning…
  • 87. Here’s the idea!
  • 88. Realistic yet ambitious goals were set that day…
  • 89. …measurable goals tied to timeframes – SMART.
  • 90. IT guy Mark was eager to help.
  • 91. [slide: interview of a person] WidgetCo makes pet products, did I mention that?
  • 92. [slide: wireframes] Wireframes were drawn.
  • 93. [slide: presentation] The agencies made impressive pitches.
  • 94. [slide: happy team] The agency seemed to love what they did.
  • 95. [slide: enthusiastic person] Susan’s enthusiasm was also ehm... strong.
  • 96. [slide: person thinking hard] Analyzing the requirements took some deep thinking.
  • 97. [slide: meeting] The team had continuous meetings.
  • 98. [slide: effective team] Finding the requirements that contributed most to impact took time.
  • 99. [slide: champagne, party] The end result was what everyone had been hoping for.
  • 100. Life in Universe Stronger buyer-seller relationship Better use of money and higher success rate Higher satisfaction for all parties involved
  • 101. Which universe do you want to live in?
  • 102. The steps we need to take
  • 103. The new dictionary
  • 104. Cost Investment
  • 105. Requirements Results
  • 106. Plan Learning
  • 107. Control Trust
  • 108. Four principles 1. We view the project as intended to create results 2. There’s agreement on how to measure and define success 3. The project is considered an investment 4. It will be a learning experience for all parties ➊ ➌ ➋ ➍
  • 109. Starting with goals
  • 110. “We need a better website!” “It’s really hard to find out who we are and there’s no way to post comments and feel involved!” “A big share of our customers want to feel involved.” “We need to reach those customers in order to channel more sales through our site.” KAA- POW! We view the project as intended to create results ➊ $€£
  • 111. “We need to reach those customers in order to channel more sales through our site.” “How many?” SCALE Number of orders per month METER Order list on e-commerce site. BENCHMARK 3,000 “We’re seeing 3,000 per month now” CONSTRAINT 5,000 “We need at least 5,000 to break even” TARGET 7,000 “We want to reach 5,000” We are in agreement on how to measure and define success➋
  • 112. “We need to reach those customers in order to channel more sales through our site.” “By when?” MILESTONE 1 – more purchasesMILESTONE 1 – more purchasesMILESTONE 1 – more purchases SCALE Number of orders per month in six monthsNumber of orders per month in six months METER Order list on e-commerce site.Order list on e-commerce site. BENCHMARK 3,000 CONSTRAINT 5,000 TARGET 7,000
  • 113. “We can tolerate higher costs for a short while.” MILESTONE 1 – more purchases, higher IT costsMILESTONE 1 – more purchases, higher IT costsMILESTONE 1 – more purchases, higher IT costs More orders Operational costs SCALE Number of orders per month in six months Hosting costs + IT staff salaries METER Order list on e-commerce site. Financial accounts BENCHMARK 3,000 €80,000 CONSTRAINT 5,000 €120,000 TARGET 7,000 €80,000
  • 114. “But we want to reduce them as soon as we see results.” MILESTONE 2 – same number of orders, lower IT costsMILESTONE 2 – same number of orders, lower IT costsMILESTONE 2 – same number of orders, lower IT costs More orders Operational costs SCALE Number of orders per month in six months Hosting costs + IT staff salaries METER Order list on e-commerce site. Financial accounts BENCHMARK CONSTRAINT 7,000 €80,000 TARGET 7,000 €50,000
  • 115. MILESTONE 2 – same number of orders, lower IT costsMILESTONE 2 – same number of orders, lower IT costsMILESTONE 2 – same number of orders, lower IT costs More orders Operational costs SCALE Number of orders per month in six months Hosting costs + IT staff salaries METER Order list on e-commerce site. Financial accounts “What are these results worth to you?” “Let me think. The answer to that determines the budget.” MILESTONE 1 – more purchases, higher IT costsMILESTONE 1 – more purchases, higher IT costsMILESTONE 1 – more purchases, higher IT costs More orders Operational costs SCALE Number of orders per month in six months Hosting costs + IT staff salaries METER Order list on e-commerce site. Financial accounts The project is an investment➌
  • 116. 7,000 orders per month Customers Place orders Product recommendations Why are we doing it? Who will help us? How will they help? What are we doing?
  • 117. 7,000 orders per month Customers Place orders Facebook integration Why are we doing it? Who will help us? How will they help? What are we doing? What else could those guys do for us? Who else can help? How? Who can obstruct us?
  • 118. 7,000 orders per month Customers What else could those guys do for us? Who else can help? How? Who can obstruct us? Friends of customers Repeat customers
  • 119. 7,000 orders per month Customers What else can they do? Place orders Tell friends
  • 120. Place orders Tell friends 7,000 orders per month Customers Which ones to try first? Is there a high-value low-hanging-fruit impact somewhere?
  • 121. Place orders Tell friends Customers What are the deliverables? Could we test it without software? Could we start earning with a partly manual process? Product recommendations Facebook like/ share
  • 122. Impact maps visualize deliverables and assumptions and link them to business goals. This helps us justify every feature we build or test.
  • 123. MILESTONE 1 – more purchases, higher IT costsMILESTONE 1 – more purchases, higher IT costsMILESTONE 1 – more purchases, higher IT costs More orders Operational costs SCALE Number of orders per month in six months Hosting costs + IT staff salaries METER Order list on e-commerce site. Financial accounts BENCHMARK 3,000 €80,000 CONSTRAINT 5,000 €120,000 TARGET 7,000 €80,000 Place orders Tell friends Customers Product recommendations Facebook like/ share 7,000 orders per month Friends of customers Repeat customers A simplified impact map with milestones attached
  • 124. Are we achieving key targets? Milestone 1 Sprint 1 Sprint 2 Sprint 3 Milestone 2 Sprint 4 Sprint 5 Sprint 6 Hmm, no. Let’s rethink our strategy! Milestone 3 Sprint 7 Sprint 8 Sprint 9 More ordersMore orders SCALE Number of orders per month in six months METER Order list on e-commerce site. BENCHMARK 3,000 CONSTRAINT 5,000 TARGET 7,000 The project will be a learning experience for all parties ➍
  • 125. ๏ Why invest in this project? ๏ Who needs to act for the goals to be achieved? ๏ How will actors’ actions contribute to the goal? ๏ What will the actors do to create impact? Goals, Milestones, Investment, Results Actors, Personas Impacts, Needs Deliverables, Features So next time you’re starting a new project, ask:
  • 126. Impact Mapping | I Books
  • 127. Background:http://jasonbleinel.deviantart.com/art/Carbon-Fibre-Texture-114032735 Resources, books, links and more: www.jakob-persson.com/rowi Results Only Web Investments
  • 128. Results Only Web Investments You’ve just been part of A production by Presented by Jakob Persson, Founder and CEO jakob.persson@sveyt.com jakobper www.jakob-persson.com lifeissveyt www.sveyt.com Background:http://jasonbleinel.deviantart.com/art/Carbon-Fibre-Texture-114032735

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