Execute with Customer Experience Agility

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Customer experience in today’s business climate requires businesses to execute, learn, and adapt at increasingly faster rates. Therein lies the opportunity for businesses that want to aggressively …

Customer experience in today’s business climate requires businesses to execute, learn, and adapt at increasingly faster rates. Therein lies the opportunity for businesses that want to aggressively compete and differentiate, build customer experience agility across their operations, and dramatically shorten design and development cycles. This session provides a hands-on introduction to the principles behind agile and lean startup—emerging practices in the developer and entrepreneurial communities—and discusses how to leverage these approaches in CX strategy, design, and business operations. With customer experience agility, brands can more rapidly learn from customers, deliver disruptive value, and respond to market conditions.

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  • 1. www.rallydev.com @zachnies! ©2013! Execute
 with Customer Experience Agility" Zach Nies – Chief Technologist!
  • 2. www.rallydev.com @zachnies! ©2013! Zach Nies @zachnies Zach Nies, Chief Technologist Rally Software Faculty University of Colorado at Boulder
  • 3. www.rallydev.com @zachnies! ©2013!
  • 4. www.rallydev.com @zachnies! ©2013! Font Sampler" http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg
  • 5. www.rallydev.com @zachnies! ©2013!
  • 6. www.rallydev.com @zachnies! ©2013!
  • 7. www.rallydev.com @zachnies! ©2013!
  • 8. www.rallydev.com @zachnies! ©2013! I love to change industries "
  • 9. www.rallydev.com @zachnies! ©2013! Apply new
 disciplines"
  • 10. www.rallydev.com @zachnies! ©2013! Become disciplined explorers…"
  • 11. www.rallydev.com @zachnies! ©2013! who know how to balance exploration
 and execution"
  • 12. www.rallydev.com @zachnies! ©2013! Build what
 people want"
  • 13. www.rallydev.com @zachnies! ©2013! Take advantage of market opportunities"
  • 14. www.rallydev.com @zachnies! ©2013! What happened to this company?"
  • 15. www.rallydev.com @zachnies! ©2013!
  • 16. www.rallydev.com @zachnies! ©2013!
  • 17. www.rallydev.com @zachnies! ©2013! 1 2 5 iPhone Released1 iPhone App SDK Released2 Android w/ Nav Released5 Major Recession3 3 iPhone App Released4 4
  • 18. www.rallydev.com @zachnies! ©2013! A lot can " happen in
 1.5 years."
  • 19. www.rallydev.com @zachnies! ©2013! Is your business Agile enough?"
  • 20. www.rallydev.com @zachnies! ©2013! Turn these disruptions into opportunities"
  • 21. www.rallydev.com @zachnies! ©2013! What’s changing?"
  • 22. www.rallydev.com @zachnies! ©2013! Time to excellence"
  • 23. www.rallydev.com @zachnies! ©2013! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
  • 24. www.rallydev.com @zachnies! ©2013! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif Excellence"
  • 25. www.rallydev.com @zachnies! ©2013! Some examples…"
  • 26. www.rallydev.com @zachnies! ©2013! 1984!
  • 27. www.rallydev.com @zachnies! ©2013! 2006!
  • 28. www.rallydev.com @zachnies! ©2013! About 20 years!
  • 29. www.rallydev.com @zachnies! ©2013! 2001!
  • 30. www.rallydev.com @zachnies! ©2013! 2006!
  • 31. www.rallydev.com @zachnies! ©2013! 5 years!
  • 32. www.rallydev.com @zachnies! ©2013! 2007!
  • 33. www.rallydev.com @zachnies! ©2013! 2010!
  • 34. www.rallydev.com @zachnies! ©2013! 3 years!
  • 35. www.rallydev.com @zachnies! ©2013! 2010!
  • 36. www.rallydev.com @zachnies! ©2013! 2012!
  • 37. www.rallydev.com @zachnies! ©2013! 2 years!
  • 38. www.rallydev.com @zachnies! ©2013! 2008!
  • 39. www.rallydev.com @zachnies! ©2013! 2012!
  • 40. www.rallydev.com @zachnies! ©2013! 4 years!
  • 41. www.rallydev.com @zachnies! ©2013! “The Tesla Model S outscores every other car
 in our test Ratings.” – Consumer Reports!
  • 42. www.rallydev.com @zachnies! ©2013! 1979!
  • 43. www.rallydev.com @zachnies! ©2013! 1989!
  • 44. www.rallydev.com @zachnies! ©2013! 10 years!
  • 45. www.rallydev.com @zachnies! ©2013! 5 years!
  • 46. www.rallydev.com @zachnies! ©2013! 2.5 years!
  • 47. www.rallydev.com @zachnies! ©2013! 1.5 years!
  • 48. www.rallydev.com @zachnies! ©2013! 1966!
  • 49. www.rallydev.com @zachnies! ©2013! 1998!
  • 50. www.rallydev.com @zachnies! ©2013! About 30 years!
  • 51. www.rallydev.com @zachnies! ©2013! 1995!
  • 52. www.rallydev.com @zachnies! ©2013! 2005!
  • 53. www.rallydev.com @zachnies! ©2013! 10 years!
  • 54. www.rallydev.com @zachnies! ©2013! http://hbr.org/2013/03/big-bang-disruption/
  • 55. www.rallydev.com @zachnies! ©2013!
  • 56. www.rallydev.com @zachnies! ©2013! Disruption can sneak up on you"
  • 57. www.rallydev.com @zachnies! ©2013! Impact on companies"
  • 58. www.rallydev.com @zachnies! ©2013! 500
  • 59. www.rallydev.com @zachnies! ©2013! Question:" ! How long does the average company on this list survive?!
  • 60. www.rallydev.com @zachnies! ©2013!
  • 61. www.rallydev.com @zachnies! ©2013! 1958: " Average lifespan was 61 years! ! 2012: " Average lifespan was 18 years!
  • 62. www.rallydev.com @zachnies! ©2013!
  • 63. www.rallydev.com @zachnies! ©2013!
  • 64. www.rallydev.com @zachnies! ©2013! 8 years!
  • 65. www.rallydev.com @zachnies! ©2013! Incumbent advantage
 is going away "
  • 66. www.rallydev.com @zachnies! ©2013! Navigating uncertainty
 is critical"
  • 67. www.rallydev.com @zachnies! ©2013! Where does uncertainty live?"
  • 68. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 69. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Where are you?"
  • 70. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Level of uncertainty"
  • 71. www.rallydev.com @zachnies! ©2013! What to do" Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Operate"
  • 72. www.rallydev.com @zachnies! ©2013! What to do" Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 73. www.rallydev.com @zachnies! ©2013! What to do" Analyze
 and Plan" Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 74. www.rallydev.com @zachnies! ©2013! What to do" Big
 Companies" Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 75. www.rallydev.com @zachnies! ©2013! Big Companies" http://www.flickr.com/photos/ironnickel/6076087519
  • 76. www.rallydev.com @zachnies! ©2013! Startups" http://www.flickr.com/photos/elcapitan/2387917709
  • 77. www.rallydev.com @zachnies! ©2013! Dynamics of uncertainty"
  • 78. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 79. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 80. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 81. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 82. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Disruption"
  • 83. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Disruption"
  • 84. www.rallydev.com @zachnies! ©2013! Aligning action
 with uncertainty"
  • 85. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/isaacmao/380257543 Create a plan to predict the future"
  • 86. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 87. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 88. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 89. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 90. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 91. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 92. www.rallydev.com @zachnies! ©2013! Market research" Product definition" Product requirements" Detailed plan" Alpha release" Beta release" Final release" FIRST CONTACT WITH CUSTOMERS"
  • 93. www.rallydev.com @zachnies! ©2013! HOW MANY GUESSES?"
  • 94. www.rallydev.com @zachnies! ©2013! FIRST CONTACT WITH POTENTIAL CUSTOMERS"
  • 95. www.rallydev.com @zachnies! ©2013!
  • 96. www.rallydev.com @zachnies! ©2013!
  • 97. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/oregondot/4132135156
  • 98. www.rallydev.com @zachnies! ©2013! Obscure
 the uncertainty
 with details of a false precision"
  • 99. www.rallydev.com @zachnies! ©2013! Embrace, reveal and mitigate
 the uncertainty"
  • 100. www.rallydev.com @zachnies! ©2013! Why does this
 feel unnatural?"
  • 101. www.rallydev.com @zachnies! ©2013!
  • 102. www.rallydev.com @zachnies! ©2013! “we have but vaguely appreciated the importance of the larger question of increasing our national efficiency.”"
  • 103. www.rallydev.com @zachnies! ©2013!
  • 104. www.rallydev.com @zachnies! ©2013!
  • 105. www.rallydev.com @zachnies! ©2013!
  • 106. www.rallydev.com @zachnies! ©2013! Assumes:" " Demand is known" 
 Supply is scarce"
  • 107. www.rallydev.com @zachnies! ©2013! 100 years later"
  • 108. www.rallydev.com @zachnies! ©2013! Annual
 Budgets" " Comprehensive
 Analysis" " Detailed
 Plans" " Waterfall
 Execution"
  • 109. www.rallydev.com @zachnies! ©2013! Works when:" " Certainty is high"
  • 110. www.rallydev.com @zachnies! ©2013! Is your business getting
 more certain?"
  • 111. www.rallydev.com @zachnies! ©2013! Agile mindset"
  • 112. www.rallydev.com @zachnies! ©2013! Assumes:" 
 Uncertainty exists" " Attention is scarce"
  • 113. www.rallydev.com @zachnies! ©2013! Adaptive
 Steering" " Disciplined
 Exploration" " Empirical
 Leaning" " Agile
 Execution"
  • 114. www.rallydev.com @zachnies! ©2013! Adaptive
 Steering" " Disciplined
 Exploration" " Empirical
 Leaning" " Agile
 Execution"
  • 115. www.rallydev.com @zachnies! ©2013! Iterative & incremental"
  • 116. www.rallydev.com @zachnies! ©2013! Sprint 1-2 Weeks Daily Scrum Product Backlog Refinement Sprint Planning Sprint Demo & Review Sprint Retrospective Product Backlog Sprint Backlog Burndown Chart Product Increment Team of 7 +/- 2 people: Scrum"
  • 117. www.rallydev.com @zachnies! ©2013! Product Backlog Refinement Release Planning Sprint Sprint Sprint Product Increment Product Increment Product Increment Release Demo & Review Release Retrospective Burnup Chart Product Backlog Release Backlog Scrum at scale"
  • 118. www.rallydev.com @zachnies! ©2013! Adaptive
 Steering" " Disciplined
 Exploration" " Empirical
 Leaning" " Agile
 Execution"
  • 119. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/memekiller/4564410767
  • 120. www.rallydev.com @zachnies! ©2013! Form Pivot Persevere Validate SalesPlaybook Ourdraftsalesplanwill closeoractivate customers. GoToMarket Wecanpackage,price, positionandpromote ouroffer. Founders Can Sell The founders can understand the flow of money and sell the offer. OperateDiscover Solution Ourproductidea solvesthecustomer’s problem. BusinessModel Ourbusinessmodel canbeprofitable. Problem We understand the problem a customer wants solved. Transition Team Wehavebudgetandadedicated transitionteam. IntoDepartments Wetransferredourknowledgeintothe departmentsandtheycanoperatethe newoffer. RollOff Wehaverolledoffeveryonefromthe discoveryteamwhowantstodo somethingnew. Pivot Persevere ExperimentExperimentExperiment Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results. Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results. Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. QuarterlySteering Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review I-2 Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next. Vision Wehaveanideaworth pursuingthatexcitesthe team. InnovationSandbox Wehaveworking agreementswithothersto runadiscoveryprocess. Team We have a dedicated, cross functional team. © 2013 Rally Software Development Corp. Turn Uncertainty" Into Knowledge"
  • 121. www.rallydev.com @zachnies! ©2013! Exploration Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. Q Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next.
  • 122. www.rallydev.com @zachnies! ©2013! Exploration Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next. Business" " Feature" " Experience" 5. Value What value will be created for these users? Workarounds How are these problems being solved today? 1. User Personas Who is encountering the problems? Circumstances Within what circumstances do these problems exist? 3. Solution What solutions may make the problems go away? 4.Technology What technologies will be used to create the solution? 8. Feedback What meaningful and measurable feedback will be gathered from the users? 9. Enablement What will be needed to make these users aware of your solution and how it solves their problems? 7. Cost of Development What costs will go into solving the user’s problems? 6. Cost of Delay What will it cost your business if you don’t solve these problems over a period of time? 2. Problems What problems are these users encountering? Feature Canvas I-1 Adapted from the Lean Canvas (www.leancanvas.com) CUSTOMER!! Name% GOAL, Journey%Need% BENEFIT, New%Ac0ons% Persona%details% INSIGHT, Emo0onal%need% New%A7tude% BRAND!! Name% ISSUE, IMPACT, Key%Performance%Indicator%(KPI)% Brand%a>ributes% TREND, Strategic%Business%Objec0ve%(SBO)% INNOVATION, New%Experience% Enabled%By% WHO! OPPORTUNITY! VALUE! CX!Strategy!Design!Canvas!!!::!!!DesigningCX.com!
  • 123. www.rallydev.com @zachnies! ©2013! Identifying meaningful gifts is challenging People don’t have time, but time invested translates to good gifts People don’t have a good gift idea until it’s too late Invested giver, finding something special for someone People with bad gift-giving histories (missed gifts) Taking the headache out of finding the perfect gift Personal gift gopher Taking a cut of every purchase Development, hosting Reminder service for upcoming birthdays/gift events Keep a list of good gifts for each individual per-user tiered subscription fee Lets you buy it straight off of our site Referrals Metrics on gift purchases (time, value) Recurring users How close to the gift deadline they were ordered Integrates with Facebook for birthdays, gift preferences Partnerships with online stores Users with a lot of gifts to give (big families) Spouses that celebrate a lot of gift giving events (bdays, anniversaries) Existing freemium users become paid users Partnerships with online stores Data from successful gift sales can drive recommendati ons Online note clipping Pinterest Next Generation Givers Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next.
  • 124. www.rallydev.com @zachnies! ©2013! Explora Knowledge We have a series of experiments that will test the validity of our top leap of faith assumptions. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next.
  • 125. www.rallydev.com @zachnies! ©2013! AssumptionsCanvas Name: Date: Key Assumption Dependent Assumptions Falsified Assumptions Other AssumptionsOther Assumptions Key Assumption Dependent Assumptions Key Assumption Dependent Assumptions I-1 Reminders will help gift givers We know when giving events will happen Text messages are acceptable reminders Suggestions will motivate givers Recipients want gifts on time We can give reasonable suggestions We can get receiver preference data We can send timely text messages Partners want referral leads We can make money through partner referrals We can get enough parter inventory Our leads will buy gifts Facebook adds will drive traffic A mobile first product strategy Knowledge test the validity of our top leap of faith assumptions.Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next.
  • 126. www.rallydev.com @zachnies! ©2013! Key assumptions" Knowledge" Pivo Persev SalesPlaybook Ourdraftsalesplanwill closeoractivate customers. GoToMarket Wecanpackage,price, positionandpromote ouroffer. Solution Ourproductidea solvesthecustomer’s problem. BusinessModel Ourbusinessmodel canbeprofitable. Team Wehavebudgetandad transitionteam. IntoDepartme Wetransferredourknowle departmentsandtheycan newoffer. RollOff Wehaverolledoffeveryon discoveryteamwhowa somethingnew. Pivo Persev ExperimentExperimentExperiment Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results. Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results. Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. QuarterlySteering Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review I-2© 2013 Rally Software Development Corp.
  • 127. www.rallydev.com @zachnies! ©2013! Docum Wehavecompletedt sideofanExperimentA E We perspe Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. re nvas that reflects our m has reviewed it. mptions ns that need to be to work. umptions
  • 128. www.rallydev.com @zachnies! ©2013! Run experiments" SaleOurdrafcloseocusto ket e,price, promote ffer. SOurp solvesth pro Wehave t Int Wetransfer department Wehaverol discover ExperimentExperimentExperiment Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results. Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results. Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review I-2© 2013 Rally Software Development Corp.
  • 129. www.rallydev.com @zachnies! ©2013! Empathize & Frame" Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. De Wehaveourexp runningwithrealsub We build m owledge umerate periments ave a series of ments that will he validity of p leap of faith sumptions.
  • 130. www.rallydev.com @zachnies! ©2013! Empathize"
  • 131. www.rallydev.com @zachnies! ©2013! Hypothesize" Background: What do you want to learn and why? What guess, assumption, risk, or question are you testing? What pain or problem is being experienced that’s motivating this experiment? If you can, write the Problem Statement from the Define worksheet here. [Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight]. Hypothesis toTest [Specific repeatable action] will create [expected result]. State your hypothesis as an if/then assertion. Is this hypothesis falsifiable? Experiment Materials and Method What will you need to run your experiment, both from your team and from others? Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the experiment? Do you need a control group to establish a comparison?
  • 132. www.rallydev.com @zachnies! ©2013! Document" Background: What do you want to learn and why? What guess, assumption, risk, or question are you testing? What pain or problem is being experienced that’s motivating this experiment? If you can, write the Problem Statement from the Define worksheet here. [Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight]. Hypothesis toTest [Specific repeatable action] will create [expected result]. State your hypothesis as an if/then assertion. Is this hypothesis falsifiable? Experiment Materials and Method What will you need to run your experiment, both from your team and from others? Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the experiment? Do you need a control group to establish a comparison? Safety: How is the experiment safe to run and how will you undo it? Why is the experiment safe to run? What about your experiment method protects you from harmful side effects? Describe how you will undo the experiment upon completion or if you discover it is no longer safe to run. Variables and Measures What variable (the manipulated variable) are you going to intentionally change during the experiment? What variables (the responding variables) do you expect to respond to changes to the manipulated variable? What variables (the control variables) do you need to keep constant during the experiment? What qualitative and quantitate measures will you use to measure your variables? What will you measure to indicate the experiment is running safely? Experiment Name: Owner: Mentor: Start Date: End Date: I-4 Next Steps: Given what you learned, what’s next? Experiment Results Describe your results from the experiment. Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on? Experiment OutcomeExperiment Outcome Validated Invalidated InconclusiveValidated Invalidated Inconclusive Cycle Time: days Cost: $ (Run rate * Cycle Time) + Costs Validated Learnings Describe what you learned from the experiment? Restate your hypothesis based on the results. If it was validated, restate it as it is. If it was invalidated, frame the hypothesis in the negative rather than the affirmative. If it was inconclusive, leave this box blank. Ancillary Insights: What else should you explore? Capture your insights that were gained unintentionally through this experiment.  
  • 133. www.rallydev.com @zachnies! ©2013! Build & Ship" ExperimentExperimentExperiment othesize ehaveapredicted outcomethatwecan measureandfalsify. he ers & M Org Wehaveturnedt intoinformationweus tellastory. We h effe Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results.
  • 134. www.rallydev.com @zachnies! ©2013! Sprint 1-2 Weeks Daily Scrum Product Backlog Refinement Sprint Planning Sprint Demo & Review Sprint Retrospective Scrum Machine Product Backlog Sprint Backlog Burndown Chart Product Increment
  • 135. www.rallydev.com @zachnies! ©2013! Test & Measure" ExperimentExperimentExperiment Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Sh Wesharedtheres thosewhocouldben from theknowledge. We colle lement veasolutionthatcan falsifyourhypothesis. w to and ts.
  • 136. www.rallydev.com @zachnies! ©2013! Collect" http://www.flickr.com/photos/mrpetersononline/4977025601
  • 137. www.rallydev.com @zachnies! ©2013! Analyze" http://www.flickr.com/photos/mrpetersononline/4992505907
  • 138. www.rallydev.com @zachnies! ©2013! Organize" http://www.flickr.com/photos/mrpetersononline/4992505641
  • 139. www.rallydev.com @zachnies! ©2013! Learn & Share" e alyze haveafactbased rgumenttoinvalidateor validateourhypothesis. a to the Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results.
  • 140. www.rallydev.com @zachnies! ©2013! Compare" Hypothesis toTest [Specific repeatable action] will create [expected result]. State your hypothesis as an if/then assertion. Is this hypothesis falsifiable? Experiment Materials and Method What will you need to run your experiment, both from your team and from others? Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the experiment? Do you need a control group to establish a comparison? Safety: How is the experiment safe to run and how will you undo it? Why is the experiment safe to run? What about your experiment method protects you from harmful side effects? Describe how you will undo the experiment upon completion or if you discover it is no longer safe to run. Variables and Measures Experiment Name: Owner: Mentor: Start Date: End Date: I-4 Experiment Results Describe your results from the experiment. Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on? Validated Learnings Describe what you learned from the experiment? Restate your hypothesis based on the results. If it was validated, restate it as it is. If it was invalidated, frame the hypothesis in the negative rather than the affirmative. If it was inconclusive, leave this box blank.
  • 141. www.rallydev.com @zachnies! ©2013! Complete" Background: What do you want to learn and why? Spouses are frustrated giving gifts because : - They wait until right before the gift-giving day (limited time) - They don’t actively thinking about it until it’s too late - They feel pensive at having to search/decide - They are worried at “missing the mark” We want to learn if some type of periodic reminder will help the spouse buy a meaningful gift on time. A loving, caring spouse needs a way to find a meaningful gift, surprisingly, there isn’t enough time, even though he’s known about it for awhile. Hypothesis toTest Giving a spouse periodic reminders before the gift deadline will cause him to buy a meaningful gift on time. Experiment Materials and Method - Find out who the giver has to give gifts to, and at what dates - When the date for a particular gift is one month away, start reminding givers 3 times a week to see if they’ve bought a gift yet; if not, encourage them to write down the best gift that comes to mind - The reminders will appear as SMS messages and originate from a simple script or from a human sending the messages - After the gift-giving date has passed, follow up with the giver and see what the reaction was Safety: How is the experiment safe to run and how will you undo it? -Our current brand is associated with cards, we don’t want confuse customers right now by extending our brand into mobile apps. For this experiment we will use an off-brand. -Because we may use a human to send the reminders, we need to limit the number of participants to 10 at any one time -If the participants stop buying cards with their gifts, we will stop the experiment - If the participants get frustrated with the reminders, we will stop any interaction with them. Variables and Measures Quantitative measures: -60% of participants will buy a gift on time compared to the control group -50% of gift givers won’t use express shipping compared to the control group Qualitative measures: - Participants will describe less stress in the buying process -The recipients will be happy with the gift Experiment Name: Personal Reminder Experiment Owner: Sarah Mentor: Liz Start Date: 8-12 End Date: 8-26 I-4 Next Steps: Given what you learned, what’s next? This form of reminders didn’t work. For the next experiment we should give suggestions instead of reminders. Experiment Results Quantitative measures: -10% of participants bought a gift on time Qualitative measures: - Participants were very stress in the buying process Experiment OutcomeExperiment Outcome Validated Invalidated InconclusiveValidated Invalidated Inconclusive Cycle Time: 10 days Cost: $ 8,000 Validated Learnings Our experiment had no positive effect on the participants. Giving periodic reminders didn’t help him buy a meaningful gift on time Ancillary Insights: What else should you explore? The reminders actually added to the stress of the situation.
  • 142. www.rallydev.com @zachnies! ©2013! Share"
  • 143. www.rallydev.com @zachnies! ©2013! Empirical Learning" Form Pivot Persevere Validate SalesPlaybook Ourdraftsalesplanwill closeoractivate customers. GoToMarket Wecanpackage,price, positionandpromote ouroffer. Founders Can Sell The founders can understand the flow of money and sell the offer. OperateDiscover Solution Ourproductidea solvesthecustomer’s problem. BusinessModel Ourbusinessmodel canbeprofitable. Problem We understand the problem a customer wants solved. Transition Team Wehavebudgetandadedicated transitionteam. IntoDepartments Wetransferredourknowledgeintothe departmentsandtheycanoperatethe newoffer. RollOff Wehaverolledoffeveryonefromthe discoveryteamwhowantstodo somethingnew. Pivot Persevere ExperimentExperimentExperiment Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results. Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results. Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. QuarterlySteering Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review I-2 Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next. Vision Wehaveanideaworth pursuingthatexcitesthe team. InnovationSandbox Wehaveworking agreementswithothersto runadiscoveryprocess. Team We have a dedicated, cross functional team. © 2013 Rally Software Development Corp.
  • 144. www.rallydev.com @zachnies! ©2013! http://www.richard-feynman.net/gallery.htm
  • 145. www.rallydev.com @zachnies! ©2013!
  • 146. www.rallydev.com @zachnies! ©2013! Example"
  • 147. www.rallydev.com @zachnies! ©2013! 1996
  • 148. www.rallydev.com @zachnies! ©2013! Leap of faith assumption?"
  • 149. www.rallydev.com @zachnies! ©2013! 30-min Delivery 1996
  • 150. www.rallydev.com @zachnies! ©2013! ~$800M IPO & private investors $8.5B Mkt Cap 30-min Delivery 1996
  • 151. www.rallydev.com @zachnies! ©2013! ~$800M IPO & private investers $8.5B Mkt Cap 4.5k employees 30-min Delivery $1B Warehouses 26 cities 1996
  • 152. www.rallydev.com @zachnies! ©2013! ~$800M IPO & private investers $8.5B Mkt Cap 4.5k employees 30-min Delivery $1.4B HomeGrocer $1B Warehouses 26 cities 1996
  • 153. www.rallydev.com @zachnies! ©2013! ~$800M IPO & private investers $8.5B Mkt Cap 4.5k employees 30-min Delivery $1.4B HomeGrocer $1B Warehouses IPO to bankrupt in <2 years 26 cities 1996
  • 154. www.rallydev.com @zachnies! ©2013! ~$800M IPO & private investers $8.5B Mkt Cap 4.5k employees 30-min Delivery $1.4B HomeGrocer ~$130 loss per order $1B Warehouses IPO to bankrupt in <2 years 26 cities 1996
  • 155. www.rallydev.com @zachnies! ©2013!
  • 156. www.rallydev.com @zachnies! ©2013! Leap of faith assumption?"
  • 157. www.rallydev.com @zachnies! ©2013! http://www.seanpercival.com/blog/2012/10/21/pre-inventory-startups/http://www.thecmosite.com/author.asp?section_id=1137&doc_id=236069 Nick Swinmurn" Founder, Zappos"
  • 158. www.rallydev.com @zachnies! ©2013! TAKE EACH MAJOR ASSUMPTION"
  • 159. www.rallydev.com @zachnies! ©2013! RUN AN EXPERIMENT"
  • 160. www.rallydev.com @zachnies! ©2013! http://www.youtube.com/watch?v=Iyjs3zeoSrM
  • 161. www.rallydev.com @zachnies! ©2013!
  • 162. www.rallydev.com @zachnies! ©2013!
  • 163. www.rallydev.com @zachnies! ©2013! Adaptive
 Steering" " Disciplined
 Exploration" " Empirical
 Leaning" " Agile
 Execution"
  • 164. www.rallydev.com @zachnies! ©2013! Exploration"
  • 165. www.rallydev.com @zachnies! ©2013! Exploration" Enterprise Lean Startup Overview Portfolio Form Pivot Persevere Validate SalesPlaybook Ourdraftsalesplanwill closeoractivate customers. GoToMarket Wecanpackage,price, positionandpromote ouroffer. Founders Can Sell The founders can understand the flow of money and sell the offer. InnovationPipeline OperateDiscover Solution Ourproductidea solvesthecustomer’s problem. BusinessModel Ourbusinessmodel canbeprofitable. Problem We understand the problem a customer wants solved. Transition Team Wehavebudgetandadedicated transitionteam. IntoDepartments Wetransferredourknowledgeintothe departmentsandtheycanoperatethe newoffer. RollOff Wehaverolledoffeveryonefromthe discoveryteamwhowantstodo somethingnew. Pivot Persevere Horizon 3 Horizon 2 Horizon 1 loration Ideas Today’s spend buys options on future high growth offers with an expected return in 36 to 72 months. Today’s spend fuels high growth offers with an expected return in 12 to 36 months. Today’s spend funds current money making offers. PlausibleOffers PossibleOffers ProbableOffers ProvenOffers ExperimentExperimentExperiment Frame ize ctedcan y. Doc Wehavec sideofa Empathize We understand the perspective of our users & customers. Measure e asedateorsis. Org Wehave intoinfo Collect We have enough data to effectively analyze the results. Learn e eted. Sh Weshared thosew from Compare We compared the data collected to our expected results. Build De Wehave running nt hatcanesis. Design We understand how to build our experiment and measure the results. Enumerate Experiments Cadence QuarterlySteering Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions Vision Wehaveanideaworth pursuingthatexcitesthe team. InnovationSandbox Wehaveworking agreementswithothersto runadiscoveryprocess. Team We have a dedicated, cross functional team.
  • 166. www.rallydev.com @zachnies! ©2013! Adaptive
 Steering" " Disciplined
 Exploration" " Empirical
 Leaning" " Agile
 Execution"
  • 167. www.rallydev.com @zachnies! ©2013! Adopting something new is a human phenomenon "
  • 168. www.rallydev.com @zachnies! ©2013! Not a technological phenomenon "
  • 169. www.rallydev.com @zachnies! ©2013! An example…"
  • 170. www.rallydev.com @zachnies! ©2013!
  • 171. www.rallydev.com @zachnies! ©2013! Need an Agile and human centered approach!
  • 172. www.rallydev.com @zachnies! ©2013! Extend Agility into your business"
  • 173. www.rallydev.com @zachnies! ©2013! Take advantage of market opportunities"
  • 174. www.rallydev.com @zachnies! ©2013! What happened to this company?"
  • 175. www.rallydev.com @zachnies! ©2013!
  • 176. www.rallydev.com @zachnies! ©2013!
  • 177. www.rallydev.com @zachnies! ©2013! 1 Began Experimentation1 2 $50M in New Product Revenue2 3 1800 Concurrent Experiments3
  • 178. www.rallydev.com @zachnies! ©2013! Books that informed this talk"
  • 179. www.rallydev.com @zachnies! ©2013! Geoffrey
 Moore" David Snowden" Ash
 Maurya" Tim
 Brown" Clayton
 Christensen" Steve
 Blank" Eric
 Ries" People who informed this talk" John & George Kembel"
  • 180. www.rallydev.com @zachnies! ©2013! Go Agile. Go Rally.!