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How to be a Lean Product Developer?
                            Marko Taipale
                         Agile Riga Day 2012




Saturday, March 17, 12
2 reasons...
                          Why this topic is
                         important for you?


Saturday, March 17, 12
Saturday, March 17, 12
Saturday, March 17, 12
1
                 We are wasting time and effort
                   on doing the wrong thing




Saturday, March 17, 12
Features used

                                  16%
                                        13%              20% valuable
                          19%                                   Sometimes
                                                                Often
                                          7%                    Always
                                                                Never
                                                                Rarely

                                45%
                                          XP2002 CHAOS report




Saturday, March 17, 12
2
                 53% of us don’t know what the
                  company is trying to achieve
                                                                    TBWA North - Study on 2010




                            We do not see the purpose in our work
                                               or
                         We do not know if the work we do has a purpose


Saturday, March 17, 12
Saturday, March 17, 12
Cycle as fast as possible




Saturday, March 17, 12
Guide for a lean
                         product developer
                1. "Lean" your business ideas               IDEAS


                2. Build faster (or not at all!)
                                                   LEARN             BUILD

                3. Measure it!
                                                           MEASURE
                4. Learn Faster




Saturday, March 17, 12
1. "Lean" your business ideas
       2. Build faster (or not at all!)
       3. Measure it!
       4. Learn Faster




Saturday, March 17, 12
What is a ”business idea”?




Saturday, March 17, 12
What is a ”business idea”?


        This guy is guessing...




                         It is just a “series of guesses”

Saturday, March 17, 12
How to communicate your
                      business idea?




Saturday, March 17, 12
4       9


                         1       3           2

                             8       5



                             7           6



Saturday, March 17, 12
So where is the guess?


            Remember this guy?




Saturday, March 17, 12
Saturday, March 17, 12
How to validate the guesses?


Saturday, March 17, 12
Customer Development
          Customer        Customer      Customer    Company
          Discovery       Validation    Creation     Building

         Problem /         Product /
        Solution Fit       Market Fit                  Scale
                                                    Organization


          Proposed          Business      Scale
            MVP              Model      Execution
                                                      Scale
                                                    Operations
                            Sales &
          Proposed         Marketing
           Funnels         Roadmap

Saturday, March 17, 12
Customer Development
          Customer        Customer      Customer    Company
          Discovery       Validation    Creation     Building

         Problem /         Product /
        Solution Fit       Market Fit                  Scale

        Get out of the building!                    Organization


          Proposed          Business      Scale
            MVP              Model      Execution
                                                      Scale
                                                    Operations
                            Sales &
          Proposed         Marketing
           Funnels         Roadmap

Saturday, March 17, 12
Customer         Customer       Customer     Company
          Discovery        Validation     Creation      Building

                                         hypotheses,
                                        experiments,
                                           insights
             data, feedback,
                insights
                                          Product
                                        Development



Saturday, March 17, 12
Customer         Customer       Customer     Company
          Discovery
                         Problem Team
                           Validation     Creation      Building

                                         hypotheses,
                                        experiments,
                                           insights
             data, feedback,
                insights Solution Team
                                   Product
                                        Development



Saturday, March 17, 12
Lean Business Idea -
                              Summary
                     • Business idea is just a series of guesses
                     • You can validate the guesses with the help
                         of Customer Development
                     • Business Model Canvas is effective
                         tool to communicate your business ideas



Saturday, March 17, 12
1. "Lean" your business ideas
       2. Build faster (or not at all!)
       3. Measure it!
       4. Learn Faster




Saturday, March 17, 12
The Concept of an
                              inventory
            Business               Design      Development
              case

                         Testing      Deployment




Saturday, March 17, 12
The Concept of an
                              inventory
                              2              8                 10
            Business               Design        Development
              case

                         Testing       Deployment

                                   5

                                                               25

Saturday, March 17, 12
Don’t write the code!

            Business               Design      Development
              case

                         Testing      Deployment




Saturday, March 17, 12
Don’t write the code!

            Business               Design      Development
              case

                         Testing      Deployment



                         If you write the code..
Saturday, March 17, 12
Inventory with ATDD
                              2                8                 5
            Business                               Development
                                      Design
              case                                    & Test

                         Deployment



                                                                 15

Saturday, March 17, 12
Architecture
                         Realisation              Vision




Saturday, March 17, 12
Inventory with ATDD +
                     JIT Architecture
                         2                         5
            Business         Design, Development       Deployment
              case                   & Test




                                                              7

Saturday, March 17, 12
Continuous Integration
               Get the stuff
                                        Build & deploy     Test & Report
                from VCS




                     +
            Continuous Deployment
                                                   Deploy to          Monitor &
                               Backup
                                                   production           Alert




Saturday, March 17, 12
Continuous Integration & Deployment




Saturday, March 17, 12
Inventory with ATDD +
                  JIT Architecture + CD
                         2
            Business          Design, Development
              case           & ATDD & Continuous
                                  Deployment




                                                    2

Saturday, March 17, 12
What about design of
                            the product?

                     • UX
                     • Business model pivots etc.
                     • Some inventories are needed - they are
                         actually buffers




Saturday, March 17, 12
Example value stream




Saturday, March 17, 12
Summary- Build faster

                     • Think timing (Just-In-Time)
                     • Think big, implement small (and fast)
                     • be aware of the inventory (queues) in your
                          product development process (system)




Saturday, March 17, 12
1. "Lean" your business ideas
       2. Build faster (or not at all!)
       3. Measure it!
       4. Learn Faster




Saturday, March 17, 12
What are things we
                         NEED to measure?
                     • How do you know you’re done?
                     • How do you know something is more
                         important/valuable than something else?
                     • How do you know how are you doing?
                     • How do you choose between two or more
                         solutions?


Saturday, March 17, 12
Number One Waste?
             Features used

                           16%
                                 13%

                 19%                                     Sometimes
                                                         Often
                                   7%                    Always
                                                         Never
                                                         Rarely

                         45%
                                   XP2002 CHAOS report




Saturday, March 17, 12
Measuring if it is used
                          Owner: Marko
                          Size: S




                                            Comments for service offers and requests




                                                        5 days
                          QUEUE: 1.6.2010                                          DONE: 6.6.2010
                          READY: 3.6.2010
                                                        3 days




Saturday, March 17, 12
Levels Monitoring
                                of monitoring
                          Biz reports      Business
                          Hearbeat.rb
                          & navigator     Application
                          Hearbeat.rb
                          & Monit       Containers & DB
                          Monit &
                          Nagios        OS & Services
                          Monit &
                          Nagios           Hardware



Saturday, March 17, 12
Funnel analysis
                            Acquisition

                             Activation
                             Retention

                              Referral

                             Revenue




Saturday, March 17, 12
Testing hypotheses with
                       Split Testing

                            A                    B



                         Acquisition         Acquisition

                         Activation          Activation
                         Retention           Retention
                          Referral            Referral

                          Revenue             Revenue

                                       20%                 40%
Saturday, March 17, 12
Summary - Measure it
                     • Measure what matters to you
                     • Measure to throw away the waste
                         (optimize the whole system)
                     • Think measuring when implementing the
                         solution
                     • Measure the business (not only tech)

Saturday, March 17, 12
1. "Lean" your business ideas
       2. Build faster (or not at all!)
       3. Measure it!
       4. Learn Faster




Saturday, March 17, 12
Saturday, March 17, 12
Ship it! - learning
                             inventory
                          2
            Business           Design, Development
              case            & ATDD & Continuous
                                   Deployment
                   Amazon: new deployment every 11.6 seconds
                       Facebook: continuous deployment
                               Flickr: same thing
                         IMVU, KaChing, KISSMetrics...
                                 Elisa, Huitale...
Saturday, March 17, 12
Get out of the building




Saturday, March 17, 12
Testing hypotheses with
                       Split Testing

                            A                    B



                         Acquisition         Acquisition

                         Activation          Activation
                         Retention           Retention
                          Referral            Referral

                          Revenue             Revenue

                                       20%                 40%
Saturday, March 17, 12
Everything is a guess

                         So how to formulate that as
                                hypotheses?




Saturday, March 17, 12
A way of learning
                                        5 whys

Saturday, March 17, 12
A3 template for problem
                                 solving




                                http://www.crisp.se/lean/a3-template




Saturday, March 17, 12
Customer         Customer       Customer     Company
          Discovery
                         Problem Team
                           Validation     Creation      Building

                                         hypotheses,
                                        experiments,
                                           insights
             data, feedback,
                insights Solution Team
                                   Product
                                        Development



Saturday, March 17, 12
Summary - Learn faster

                     • Truth is out there: Ship It & Get out from
                         the building
                     • Identify root causes and use A3 for
                         problem solving




Saturday, March 17, 12
Executive summary


                     • Stop wasting people’s time
                     • Communicate the purpose to engage
                         people around you




Saturday, March 17, 12
Marko Taipale
                    @markotaipale
                    huitale.blogspot.com
                     marko.taipale@huitale.com

           I help companies to improve by showing
           what I have done, how I have done it
           and what I have learned about it

         I am also a CTO of


Saturday, March 17, 12

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How to be a Lean Product Developer? @Agile Riga Day 2012

  • 1. How to be a Lean Product Developer? Marko Taipale Agile Riga Day 2012 Saturday, March 17, 12
  • 2. 2 reasons... Why this topic is important for you? Saturday, March 17, 12
  • 5. 1 We are wasting time and effort on doing the wrong thing Saturday, March 17, 12
  • 6. Features used 16% 13% 20% valuable 19% Sometimes Often 7% Always Never Rarely 45% XP2002 CHAOS report Saturday, March 17, 12
  • 7. 2 53% of us don’t know what the company is trying to achieve TBWA North - Study on 2010 We do not see the purpose in our work or We do not know if the work we do has a purpose Saturday, March 17, 12
  • 9. Cycle as fast as possible Saturday, March 17, 12
  • 10. Guide for a lean product developer 1. "Lean" your business ideas IDEAS 2. Build faster (or not at all!) LEARN BUILD 3. Measure it! MEASURE 4. Learn Faster Saturday, March 17, 12
  • 11. 1. "Lean" your business ideas 2. Build faster (or not at all!) 3. Measure it! 4. Learn Faster Saturday, March 17, 12
  • 12. What is a ”business idea”? Saturday, March 17, 12
  • 13. What is a ”business idea”? This guy is guessing... It is just a “series of guesses” Saturday, March 17, 12
  • 14. How to communicate your business idea? Saturday, March 17, 12
  • 15. 4 9 1 3 2 8 5 7 6 Saturday, March 17, 12
  • 16. So where is the guess? Remember this guy? Saturday, March 17, 12
  • 18. How to validate the guesses? Saturday, March 17, 12
  • 19. Customer Development Customer Customer Customer Company Discovery Validation Creation Building Problem / Product / Solution Fit Market Fit Scale Organization Proposed Business Scale MVP Model Execution Scale Operations Sales & Proposed Marketing Funnels Roadmap Saturday, March 17, 12
  • 20. Customer Development Customer Customer Customer Company Discovery Validation Creation Building Problem / Product / Solution Fit Market Fit Scale Get out of the building! Organization Proposed Business Scale MVP Model Execution Scale Operations Sales & Proposed Marketing Funnels Roadmap Saturday, March 17, 12
  • 21. Customer Customer Customer Company Discovery Validation Creation Building hypotheses, experiments, insights data, feedback, insights Product Development Saturday, March 17, 12
  • 22. Customer Customer Customer Company Discovery Problem Team Validation Creation Building hypotheses, experiments, insights data, feedback, insights Solution Team Product Development Saturday, March 17, 12
  • 23. Lean Business Idea - Summary • Business idea is just a series of guesses • You can validate the guesses with the help of Customer Development • Business Model Canvas is effective tool to communicate your business ideas Saturday, March 17, 12
  • 24. 1. "Lean" your business ideas 2. Build faster (or not at all!) 3. Measure it! 4. Learn Faster Saturday, March 17, 12
  • 25. The Concept of an inventory Business Design Development case Testing Deployment Saturday, March 17, 12
  • 26. The Concept of an inventory 2 8 10 Business Design Development case Testing Deployment 5 25 Saturday, March 17, 12
  • 27. Don’t write the code! Business Design Development case Testing Deployment Saturday, March 17, 12
  • 28. Don’t write the code! Business Design Development case Testing Deployment If you write the code.. Saturday, March 17, 12
  • 29. Inventory with ATDD 2 8 5 Business Development Design case & Test Deployment 15 Saturday, March 17, 12
  • 30. Architecture Realisation Vision Saturday, March 17, 12
  • 31. Inventory with ATDD + JIT Architecture 2 5 Business Design, Development Deployment case & Test 7 Saturday, March 17, 12
  • 32. Continuous Integration Get the stuff Build & deploy Test & Report from VCS + Continuous Deployment Deploy to Monitor & Backup production Alert Saturday, March 17, 12
  • 33. Continuous Integration & Deployment Saturday, March 17, 12
  • 34. Inventory with ATDD + JIT Architecture + CD 2 Business Design, Development case & ATDD & Continuous Deployment 2 Saturday, March 17, 12
  • 35. What about design of the product? • UX • Business model pivots etc. • Some inventories are needed - they are actually buffers Saturday, March 17, 12
  • 37. Summary- Build faster • Think timing (Just-In-Time) • Think big, implement small (and fast) • be aware of the inventory (queues) in your product development process (system) Saturday, March 17, 12
  • 38. 1. "Lean" your business ideas 2. Build faster (or not at all!) 3. Measure it! 4. Learn Faster Saturday, March 17, 12
  • 39. What are things we NEED to measure? • How do you know you’re done? • How do you know something is more important/valuable than something else? • How do you know how are you doing? • How do you choose between two or more solutions? Saturday, March 17, 12
  • 40. Number One Waste? Features used 16% 13% 19% Sometimes Often 7% Always Never Rarely 45% XP2002 CHAOS report Saturday, March 17, 12
  • 41. Measuring if it is used Owner: Marko Size: S Comments for service offers and requests 5 days QUEUE: 1.6.2010 DONE: 6.6.2010 READY: 3.6.2010 3 days Saturday, March 17, 12
  • 42. Levels Monitoring of monitoring Biz reports Business Hearbeat.rb & navigator Application Hearbeat.rb & Monit Containers & DB Monit & Nagios OS & Services Monit & Nagios Hardware Saturday, March 17, 12
  • 43. Funnel analysis Acquisition Activation Retention Referral Revenue Saturday, March 17, 12
  • 44. Testing hypotheses with Split Testing A B Acquisition Acquisition Activation Activation Retention Retention Referral Referral Revenue Revenue 20% 40% Saturday, March 17, 12
  • 45. Summary - Measure it • Measure what matters to you • Measure to throw away the waste (optimize the whole system) • Think measuring when implementing the solution • Measure the business (not only tech) Saturday, March 17, 12
  • 46. 1. "Lean" your business ideas 2. Build faster (or not at all!) 3. Measure it! 4. Learn Faster Saturday, March 17, 12
  • 48. Ship it! - learning inventory 2 Business Design, Development case & ATDD & Continuous Deployment Amazon: new deployment every 11.6 seconds Facebook: continuous deployment Flickr: same thing IMVU, KaChing, KISSMetrics... Elisa, Huitale... Saturday, March 17, 12
  • 49. Get out of the building Saturday, March 17, 12
  • 50. Testing hypotheses with Split Testing A B Acquisition Acquisition Activation Activation Retention Retention Referral Referral Revenue Revenue 20% 40% Saturday, March 17, 12
  • 51. Everything is a guess So how to formulate that as hypotheses? Saturday, March 17, 12
  • 52. A way of learning 5 whys Saturday, March 17, 12
  • 53. A3 template for problem solving http://www.crisp.se/lean/a3-template Saturday, March 17, 12
  • 54. Customer Customer Customer Company Discovery Problem Team Validation Creation Building hypotheses, experiments, insights data, feedback, insights Solution Team Product Development Saturday, March 17, 12
  • 55. Summary - Learn faster • Truth is out there: Ship It & Get out from the building • Identify root causes and use A3 for problem solving Saturday, March 17, 12
  • 56. Executive summary • Stop wasting people’s time • Communicate the purpose to engage people around you Saturday, March 17, 12
  • 57. Marko Taipale @markotaipale huitale.blogspot.com marko.taipale@huitale.com I help companies to improve by showing what I have done, how I have done it and what I have learned about it I am also a CTO of Saturday, March 17, 12