Creating an Agile Business

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Have you struggled to bring new features, products and services to market? If so, you aren’t alone, most companies struggle with these issues. You likely don’t have an execution problem. The real issue is that you’ve lost your ability to explore. The startup community has evolved disciplined practices that allow them to successfully navigate these highly uncertain environments. In this talk, you will learn how to scale these techniques to become effective, disciplined explorers who know how to balance execution and exploration inside the context of a large company. This will allow you to successfully navigate the uncertainty of bringing new features, products and services to market, while not sacrificing your ability to execute.

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  • Great presentation! (Note slides 116 & 117, 187, 197, 202, 210, 215 show errors on slideshare - unable to load).
    I also appreciate how you included URLs to the images you used. Some images apply to an upcoming presentation I have for med schools, and I appreciate being able to find the source image.
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Creating an Agile Business

  1. Creating an Agile BusinessMile High Agile
  2. Zach Nies@zachniesZach Nies, Chief TechnologistRally Softwarezach.nies@rallydev.com
  3. Font Samplerhttp://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg
  4. I love to changeindustries
  5. Apply newdisciplines
  6. Become disciplinedexplorers…
  7. who know how tobalance explorationand execution
  8. Build whatpeople want
  9. Createa viable business
  10. What  happened  to  this  company?  
  11. 1   2   5  iPhone  Released  1  iPhone  App  SDK  Released  2  Android  w/  Nav  Released  5  Major  Recession  3  3  TomTom  iPhone  App  4  4  
  12. A lot can !happen in !1 year.!
  13. The  characteris3cs  of  innova3on  are  changing  
  14. Is your businessAgile enough?!
  15. Turn thesedisruptions intoopportunities!
  16. What’s  changing?  
  17. Technology  adop3on  
  18. hAp://upload.wikimedia.org/wikipedia/en/4/45/DiffusionOfInnovaKon.png  
  19. hAp://upload.wikimedia.org/wikipedia/en/4/45/DiffusionOfInnovaKon.png  
  20. What if…!
  21. hAp://upload.wikimedia.org/wikipedia/en/4/45/DiffusionOfInnovaKon.png  
  22. hAp://hbr.org/2013/03/big-­‐bang-­‐disrupKon/  
  23. Disrup3on  has  a  bigger  impact  
  24. Time  to  excellence  
  25. hAp://en.wikipedia.org/wiki/File:DisrupKvetechnology.gif  
  26. hAp://en.wikipedia.org/wiki/File:DisrupKvetechnology.gif  Excellence!
  27. Some examples…!
  28. 1984!
  29. 2006!
  30. About 20 years!
  31. 2001!
  32. 2006!
  33. 5 years!
  34. 2007!
  35. 2010!
  36. 3 years!
  37. 2010!
  38. 2012!
  39. 2 years!
  40. 2008!
  41. 2012!
  42. 4 years!
  43. 1979!
  44. 1989!
  45. 10 years!
  46. 5 years!
  47. 2.5 years!
  48. 1.5 years!
  49. Disrup3on  can  sneak  up  on  you  
  50. Impact  on  companies  
  51. 500
  52. Question:!!How long does the average companyon this list survive?!
  53. 1958: !Average lifespan was 61 years!!2012: !Average lifespan was 18 years!
  54. Market  churn  creates  uncertainty    
  55. Your  business  needs  to  become  more  Agile  
  56. Don’t  fall  off  the  commitment  cliff  
  57. CostValueTimeValueValue of commitment – Normal!
  58. CostValueTimeValue Opp CostValue of commitment – Normal!
  59. CostValueTimeValue   Opp  Cost   Total  Value  Value of commitment – Normal!
  60. CostValueTimeValue Opp Cost Total ValueOptimal commitment!Value of commitment – Normal!
  61. Value of commitment – High Uncertainty!
  62. CostValueTimeValueValue of commitment – High Uncertainty!
  63. CostValueTimeValue Opp CostValue of commitment – High Uncertainty!
  64. CostValueTimeValue Opp Cost Total ValueValue of commitment – High Uncertainty!
  65. CostValueTimeValue   Opp  Cost   Total  Value  Optimal commitment!Value of commitment – High Uncertainty!
  66. An example…!
  67. CostValueTimeValue Opp Cost Total ValueAbility to respond!Optimal commitment!
  68. CostValueTimeValue Opp Cost Total ValueAbility to respond!Fastest
Response?!
  69. Agile  teams  &  organiza3on    
  70. Steering  vs.  Planning  
  71. Technology  adop3on  is  a  human  phenomenon    
  72. Not  a  technological  phenomenon    
  73. An example…!
  74. Tribes  are  more  connected  
  75. Change  creates  uncertainty  
  76. Chaotic! Simple!Complicated!Complex!Uncertainty!
  77. TakeAction!FollowRules!Analyze!Guess &Learn!Chaotic! Simple!Complex! Complicated!Uncertainty!
  78. TakeAction!FollowRules!Analyze!Guess &Learn!Chaotic! Simple!Complex! Complicated!Bureaucrat!Engineer!Firefighter! Entrepreneur!Uncertainty!
  79. TakeAction!FollowRules!Analyze!Guess &Learn!Chaotic! Simple!Complex! Complicated!Firefighter! Bureaucrat!Engineer!Entrepreneur!Uncertainty!
  80. ExploreExecuteUncertainty!
  81. EmergeAnalyzeUncertainty!
  82. ExperimentPlanUncertainty!
  83. Chaotic! Simple!Complicated!Complex!Product lifecycle!
  84. Chaotic! Simple!Complicated!Complex!Product lifecycle!
  85. Chaotic! Simple!Complicated!Complex!Product lifecycle!
  86. Chaotic! Simple!Complicated!Complex!Product lifecycle!
  87. Chaotic! Simple!Complicated!Complex!Disruption!Product lifecycle!
  88. Chaotic! Simple!Complicated!Complex!Disruption!Product lifecycle!
  89. Naviga3ng  uncertainty  
  90. Discovering  demand    Amplifying  engagement  
  91. hAp://www.flickr.com/photos/isaacmao/380257543  Create a plan topredict the future!
  92. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
  93. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITH CUSTOMERS!
  94. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
  95. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
  96. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
  97. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
  98. Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
  99. HOW MANYGUESSES?!
  100. FIRST CONTACTWITH POTENTIALCUSTOMERS!
  101. hAp://www.flickr.com/photos/oregondot/4132135156  
  102. Obscure
the uncertainty
with details!
  103. Embrace andreveal
the uncertainty!
  104. Sounds like
a startup!
  105. How does
Eric Ries define
a Lean Startup?!
  106. Where doesuncertainty live?
  107. Brown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    
  108. Where are you?
  109. Brown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    
  110. Brown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    Level of uncertainty
  111. Type of innovationSustainingBrown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    
  112. When toexplore vs execute?
  113. What to doBrown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    Execute
  114. What to doBrown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    
  115. What to doBigCompaniesBrown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    
  116. BigCompanieshAp://www.flickr.com/photos/ironnickel/6076087519  
  117. StartupshAp://www.flickr.com/photos/elcapitan/2387917709  
  118. Example – Taxi Cabs
  119. hAp://www.flickr.com/photos/emilyrides/5048843409  
  120. Brown,  Tim  (2009-­‐09-­‐16).  Change  by  Design  (Kindle  LocaKon  1984).  Harper  Collins,  Inc..  Kindle  EdiKon.    
  121. Discover the future!Validate!Discover! Transition!Business Model!Vision and Empathy!FrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearn
  122. “Get out of thebuilding!”!Steve Blank!
  123. “Meaning emergesthroughinteraction”!Dave Snowden!
  124. Vision and Empathy!Discover the future!
  125. hAp://www.flickr.com/photos/klearchos/4541072707  Vision!
  126. The idea is NOT theonly thing thatmatters.
  127. What does matter?According to Simon Sinek
  128. hAp://www.flickr.com/photos/usarmyafrica/4553749920  Empathy!
  129. hAp://www.flickr.com/photos/skillerphotos/7875656716  
  130. Discover the future!Business Model!Vision and Empathy!
  131. Business Model!
  132. 1 23456789
  133. Example – iPod
  134. hAp://www.flickr.com/photos/75001512@N00/4683351383  Walkman forthe digital ageDesign, Manufacturing,Marketing, Support+ Margin & ProfithAp://www.flickr.com/photos/mrmonochrome/93535053  
  135. Discover!Discover!Business Model!Vision and Empathy!
  136. Discover!Problem
Discovery!We understand theproblem a customer
wants solved!Discover!
  137. Customers don’t careabout your solution.They care about theirproblems.“Dave McClure
  138. hAp://www.flickr.com/photos/adacKo/2535502416  
  139. Typicalmarket research:Customerattributes
  140. hAp://www.flickr.com/photos/serpicolugnut/172616929  
  141. Innovationmarket research:Customercircumstances
  142. hAp://www.flickr.com/photos/icanchangethisright/3195180388  
  143. hAp://www.flickr.com/photos/twostoutmonks/664314897  
  144. What job isyour solution beinghired to perform?Milkshake Test
  145. hAp://www.flickr.com/photos/icanchangethisright/3195180388  
  146. hAp://www.flickr.com/photos/twostoutmonks/664314897  
  147. Competition
  148. hAp://www.flickr.com/photos/16339684@N00/2498270160  hAp://www.flickr.com/photos/nkarim/6761890929  
  149. hAp://www.flickr.com/photos/icanchangethisright/3195180388  
  150. hAp://www.flickr.com/photos/jorgebrazil/2421696121  hAp://www.flickr.com/photos/like_the_grand_canyon/5661863401  
  151. hAp://www.flickr.com/photos/twostoutmonks/664314897  
  152. hAp://www.flickr.com/photos/makelessnoise/333188801  
  153. hAp://www.flickr.com/photos/rodrigofavera/2636733253  
  154. Discover!Solution
Validation!Our product idea
solves the customer’s
problem!Discover!
  155. Test a low fidelityMinimum ViableProduct
  156. Goal: Get realfeedback withoutbuilding a realproduct
  157. How?
  158. Video Demo (Landing Page)ConciergeWizard of OzCrowd FundingSingle Key Feature
  159. Video Demo (Landing Page)ConciergeWizard of OzCrowd FundingSingle Key Feature
  160. Create a real productexperience with theleast effort possible
  161. The MVP…
  162. hAp://www.seanpercival.com/blog/2012/10/21/pre-­‐inventory-­‐startups/  Delivering  Happiness:  A  Path  to  Profits,  Passion,  and  Purpose  By  Tony  Hsieh  
  163. Discover!Business
Validation!Our business model
can be profitable!Discover!
  164. High level business modelhAp://www.forentrepreneurs.com/saas-­‐metrics/  
  165. Discover the future!Business Model!Vision and Empathy!Pivot
or
Persevere?!
  166. Validate!Validate!Business Model!Vision and Empathy!
  167. Validate!Prepare to Sell!The founders can:
Understand the flow ofmoney and sell the offer!Validate!
  168. You?
  169. FindEarlyvangelists
  170. Validate!CloseDeals!Our draft sales plan willclose or activatecustomers!Validate!
  171. Sales FunnelhAp://www.flickr.com/photos/carlagates247/5524789016  
  172. Activation FunnelhAp://www.flickr.com/photos/500hats/577630547  
  173. Validate!PackageOffer!We can package, price,position and promote
our offer!Validate!
  174. For (target customers)Who (have the following problem)The (product name) is a (describe theproduct or solution)That provides (key benefit)Unlike (reference competition),The product/solution (describe the keypoint of competitive differentiation)Product Positioning
  175. Discover the future!Business Model!Vision and Empathy!Pivot
or
Persevere?!
  176. Discover the future!Transition!Business Model!Vision and Empathy!
  177. Transition!TransitionTeam!We have budget and
a cross departmentaltransition team!Transition!
  178. Managing  a  Porcolio    The  Three  Horizons  Model  Horizon  1  0  to  12  months  Horizon  2  12  to  36  months  Horizon  3  36  to  72  months  Current  Businesses    Generate  today’s  cash  flow  High  Growth  Businesses    Today’s  revenue  growth  +  tomorrow’s  cash  flow  Growth  OpKons    OpKons  on  future    high-­‐growth  businesses  Expected  Window  of  Returns  Accumulated  Total  Returns  Figure  2.4  
  179. 20% time orseparate H3 groups?DedicatedH2 transition
  180. Four Modes of ExecutionExecution Mode Invention Deployment Optimization TransitionsType of LeaderVisionaryInventorPragmaticDeployerConservativeOptimizerPragmaticOrchestratorCore Competence Creativity Competitiveness Control CollaborationCore Attribute Spontaneous Tough-minded Prepared EmpatheticDecision Style Intuition Experimentation Deliberation ConsensusFunctions Most inAlignmentR&D, CreativeServicesSales, EngineeringFinance,OperationsHR, Marketing,Customer SupptFigure  6.4  
  181. Transition!Integrateinto Depts!Transition!Departments can take onour new offer!
  182. FromExplorationtoExecutionhAp://www.flickr.com/photos/mckaysavage/497593758  
  183. InventorsInventor to department transition
  184. OrchestratorInventors DeployersDepartmentsInventor to department transition
  185. OrchestratorInventors DeployersDepartmentsInventor to department transition
  186. OrchestratorInventors DeployersDepartmentsInventor to department transition
  187. OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringSalesMarketing
  188. OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
  189. OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
  190. Validate!Roll offInventors!We no longer need ourinventors on the team!Transition!
  191. OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
  192. OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
  193. OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
  194. DepartmentsInventor to department transitionProductEngineeringMarketingSales
  195. Discover the future!Validate!Discover! Transition!Business Model!Vision and Empathy!
  196. Discover the future!FrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearn
  197. Guesses!Knowledge!Experiments!
  198. Empathize & Frame!Test & Measure!Build&Ship!Learn&Share!Experiments!
  199. TAKE EACH MAJOR GUESS
  200. RUN AN EXPERIMENT
  201. hAp://www.youtube.com/watch?v=Iyjs3zeoSrM  
  202. hAp://www.richard-­‐feynman.net/gallery.htm  
  203. Feedback!
  204. Feedback!
  205. Feedback!
  206. Culture
  207. No blame or shame
  208. Democratize data
  209. Use quantitativeand qualitative data
  210. Distributedecision making
  211. DiversityIndependenceDecentralizationAggregation
  212. Run smallexperiments
  213. hAp://www.flickr.com/photos/5wa/6400997231  Slack
  214. Discover the future!Validate!Discover! Transition!FrameMeasureBuildLearnBusiness Model!Vision and Empathy!FrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearn
  215. Disciplined  explora3on  
  216. Extend Agility intoyour business!
  217. Take advantage ofmarketopportunities!
  218. What  happened  to  this  company?  
  219. 1  Began  Using  Lean  Startup  1  2  $50M  in  New  Product  Revenue  2  3  1800  Concurrent  Experiments      2  
  220. Books that informed this talk
  221. GeoffreyMooreDavidSnowdenAshMauryaTimBrownClaytonChristensenSteveBlankEricRiesPeople who informed this talkBrant CooperPatrickVlaskovits
  222. hAp://www.flickr.com/photos/flaAop341/224597838  

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