Is Your Business Agile Enough?

  • 467 views
Uploaded on

How well are you responding to and taking advantage of market disruptions? Business agility is key to staying alive and taking advantage of market shifts for long-term business viability. This …

How well are you responding to and taking advantage of market disruptions? Business agility is key to staying alive and taking advantage of market shifts for long-term business viability. This presentation walks you through the steps to make your organization more innovative and able to meet an ever-changing market.

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
467
On Slideshare
0
From Embeds
0
Number of Embeds
3

Actions

Shares
Downloads
0
Comments
0
Likes
2

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Is Your Business Agile Enough?! Zach Nies – Chief Technologist! www.rallydev.com @zachnies! ©2013!
  • 2. Zach Nies Zach Nies, Chief Technologist Rally Software Faculty University of Colorado at Boulder @zachnies www.rallydev.com @zachnies! ©2013!
  • 3. www.rallydev.com @zachnies! ©2013!
  • 4. Font Sampler! www.rallydev.com @zachnies! http://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg ©2013! http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeg
  • 5. www.rallydev.com @zachnies! ©2013!
  • 6. www.rallydev.com @zachnies! ©2013!
  • 7. www.rallydev.com @zachnies! ©2013!
  • 8. I love to change industries ! www.rallydev.com @zachnies! ©2013!
  • 9. Apply new
 disciplines! www.rallydev.com @zachnies! ©2013!
  • 10. Become disciplined explorers…! www.rallydev.com @zachnies! ©2013!
  • 11. who know how to balance exploration
 and execution! www.rallydev.com @zachnies! ©2013!
  • 12. Build what
 people want! www.rallydev.com @zachnies! ©2013!
  • 13. Take advantage of market opportunities! www.rallydev.com @zachnies! ©2013!
  • 14. What happened to this company?! www.rallydev.com @zachnies! ©2013!
  • 15. www.rallydev.com @zachnies! ©2013!
  • 16. www.rallydev.com @zachnies! ©2013!
  • 17. 1 2 www.rallydev.com @zachnies! 4 iPhone App Released 5 3 Major Recession 4 2 iPhone App SDK Released 3 1 iPhone Released Android w/ Nav Released 5 ©2013!
  • 18. A lot can ! happen in
 1.5 years.! www.rallydev.com @zachnies! ©2013!
  • 19. Is your business Agile enough?! www.rallydev.com @zachnies! ©2013!
  • 20. Turn these disruptions into opportunities! www.rallydev.com @zachnies! ©2013!
  • 21. What’s changing?! www.rallydev.com @zachnies! ©2013!
  • 22. Time to excellence! www.rallydev.com @zachnies! ©2013!
  • 23. http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif www.rallydev.com @zachnies! ©2013!
  • 24. Excellence! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif www.rallydev.com @zachnies! ©2013!
  • 25. Some examples…! www.rallydev.com @zachnies! ©2013!
  • 26. 1984! www.rallydev.com @zachnies! ©2013!
  • 27. 2006! www.rallydev.com @zachnies! ©2013!
  • 28. About 20 years! www.rallydev.com @zachnies! ©2013!
  • 29. 2001! www.rallydev.com @zachnies! ©2013!
  • 30. 2006! www.rallydev.com @zachnies! ©2013!
  • 31. 5 years! www.rallydev.com @zachnies! ©2013!
  • 32. 2007! www.rallydev.com @zachnies! ©2013!
  • 33. 2010! www.rallydev.com @zachnies! ©2013!
  • 34. 3 years! www.rallydev.com @zachnies! ©2013!
  • 35. 2010! www.rallydev.com @zachnies! ©2013!
  • 36. 2012! www.rallydev.com @zachnies! ©2013!
  • 37. 2 years! www.rallydev.com @zachnies! ©2013!
  • 38. 2008! www.rallydev.com @zachnies! ©2013!
  • 39. 2012! www.rallydev.com @zachnies! ©2013!
  • 40. 4 years! www.rallydev.com @zachnies! ©2013!
  • 41. “The Tesla Model S outscores every other car
 in our test Ratings.” – Consumer Reports! www.rallydev.com @zachnies! ©2013!
  • 42. 1979! www.rallydev.com @zachnies! ©2013!
  • 43. 1989! www.rallydev.com @zachnies! ©2013!
  • 44. 10 years! www.rallydev.com @zachnies! ©2013!
  • 45. 5 years! www.rallydev.com @zachnies! ©2013!
  • 46. 2.5 years! www.rallydev.com @zachnies! ©2013!
  • 47. 1.5 years! www.rallydev.com @zachnies! ©2013!
  • 48. 1966! www.rallydev.com @zachnies! ©2013!
  • 49. 1998! www.rallydev.com @zachnies! ©2013!
  • 50. About 30 years! www.rallydev.com @zachnies! ©2013!
  • 51. 1995! www.rallydev.com @zachnies! ©2013!
  • 52. 2005! www.rallydev.com @zachnies! ©2013!
  • 53. 10 years! www.rallydev.com @zachnies! ©2013!
  • 54. www.rallydev.com @zachnies! ©2013! http://hbr.org/2013/03/big-bang-disruption/
  • 55. www.rallydev.com @zachnies! ©2013!
  • 56. Disruption can sneak up on you! www.rallydev.com @zachnies! ©2013!
  • 57. Impact on companies! www.rallydev.com @zachnies! ©2013!
  • 58. 500 www.rallydev.com @zachnies! ©2013!
  • 59. Question:! ! How long does the average company on this list survive?! www.rallydev.com @zachnies! ©2013!
  • 60. www.rallydev.com @zachnies! ©2013!
  • 61. 1958: ! Average lifespan was 61 years! ! 2012: ! Average lifespan was 18 years! www.rallydev.com @zachnies! ©2013!
  • 62. www.rallydev.com @zachnies! ©2013!
  • 63. www.rallydev.com @zachnies! ©2013!
  • 64. 8 years! www.rallydev.com @zachnies! ©2013!
  • 65. Incumbent advantage
 is going away ! www.rallydev.com @zachnies! ©2013!
  • 66. Navigating uncertainty
 is critical! www.rallydev.com @zachnies! ©2013!
  • 67. Where does uncertainty live?! www.rallydev.com @zachnies! ©2013!
  • 68. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 69. Where are you?! www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 70. Level of uncertainty! www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 71. What to do! Operate! www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 72. What to do! www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 73. What to do! Analyze
 and Plan! www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 74. What to do! Big
 Companies! www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 75. Big Companies! www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/ironnickel/6076087519
  • 76. Startups! www.rallydev.com @zachnies! http://www.flickr.com/photos/elcapitan/2387917709 ©2013!
  • 77. Aligning action
 with uncertainty! www.rallydev.com @zachnies! ©2013!
  • 78. Create a plan to predict the future! www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/isaacmao/380257543
  • 79. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 80. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 81. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 82. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 83. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 84. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 85. Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 86. HOW MANY GUESSES?! www.rallydev.com @zachnies! ©2013!
  • 87. FIRST CONTACT WITH POTENTIAL CUSTOMERS! www.rallydev.com @zachnies! ©2013!
  • 88. www.rallydev.com @zachnies! ©2013!
  • 89. www.rallydev.com @zachnies! ©2013!
  • 90. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/oregondot/4132135156
  • 91. Obscure
 the uncertainty
 with details of a false precision! www.rallydev.com @zachnies! ©2013!
  • 92. Embrace, reveal and mitigate
 the uncertainty! www.rallydev.com @zachnies! ©2013!
  • 93. Why does this
 feel unnatural?! www.rallydev.com @zachnies! ©2013!
  • 94. www.rallydev.com @zachnies! ©2013!
  • 95. “we have but vaguely appreciated the importance of the larger question of increasing our national efficiency.”! www.rallydev.com @zachnies! ©2013!
  • 96. www.rallydev.com @zachnies! ©2013!
  • 97. www.rallydev.com @zachnies! ©2013!
  • 98. www.rallydev.com @zachnies! ©2013!
  • 99. Assumes:! ! Demand is known! 
 Supply is scarce! www.rallydev.com @zachnies! ©2013!
  • 100. 100 years later! www.rallydev.com @zachnies! ©2013!
  • 101. Annual
 Budgets! ! Comprehensive
 Analysis! ! Detailed
 Plans! ! Waterfall
 Execution! www.rallydev.com @zachnies! ©2013!
  • 102. Works when:! ! Certainty is high! www.rallydev.com @zachnies! ©2013!
  • 103. Is your business getting
 more certain?! www.rallydev.com @zachnies! ©2013!
  • 104. Agile mindset! www.rallydev.com @zachnies! ©2013!
  • 105. Assumes:! 
 Uncertainty exists! ! Attention is scarce! www.rallydev.com @zachnies! ©2013!
  • 106. Build Roll Off We have rolled off everyone from the discovery team who wants to do something new. Into Departments We transferred our knowledge into the departments and they can operate the new offer. Team Mentor Checkin Mentor Checkin Mentor Checkin Demo We have budget and a dedicated transition team. Pivot ok Sa les Pla ybo rd clo raft se sa cu or a les p st om ctiv lan er ate wil s. l Ou Mentor Checkin Demo Operational Review Mentor Checkin Mentor Checkin Demo Mentor Checkin Mentor Checkin Mentor Checkin Demo Operational Review So lut ion so Our lve pr s t od h u pr e cu ct id ob st e lem om a er . ’s Demo Steering Mentor Checkin Mentor Checkin ion Vis Quarterly Mentor Checkin W pu e h rs av uin e a g t n id h e te at e a w am xcit or . es th th e Operate Experiment Experiment Experiment Measure Learn mp let e h Ex ave pe a c rim om en ple t A te 3. d Co We An aly ze Imp lem ent We Hy pot h W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsif n y. are Sh ize ith sw t ult efi es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f gan Or a at o ed t th use ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int y plo De t en . im ts er jec xp ub re ls ou rea ve h ha wit We ning n ru nt me ar We h g va um ave lid en a at t t fa e o o in ct ur va bas hy lid ed po at th e o es r is. Compare We compared the data collected to our expected results. h fa ave lsif a y o solu ur tio hy n t po ha th t c es an is. Collect We have enough data to effectively analyze the results. cu Do We have a series of experiments that will test the validity of our top leap of faith assumptions. Design We understand how to build our experiment and measure the results. esiz e Empathize We understand the perspective of our users & customers. ft e le . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s Identify Key Assumptions n o c Weositio our p O an c Frame Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. t rke e, Ma e, pric te To kagpromo Go an pacandffer. del Mo del ess s mo le. sin es tab Bu ur bubseinprofi box and nS tio Enumerate Experiments We have an updated canvas that reflects our latest learnings and the team has reviewed it. Persevere The founders can understand the flow of money and sell the offer. Pivot Founders Can Sell Prepare Portfolio Horizon 1 Today’s spend funds current money making offers. Transition Validate Problem Persevere Discover We understand the problem a customer wants solved. ova Cadence Innovation Pipeline Horizon 2 Today’s spend fuels high growth offers with an expected return in 12 to 36 months. Team Review Canvas Proven Offers Probable Offers Form o ing s t rk her s. wo h ot oces r ve ha s witry p We ent ove em disc re ag un a r @zachnies! Horizon 3 Today’s spend buys options on future high growth offers with an expected return in 36 to 72 months. We have a dedicated, cross functional team. We have identified the 3 most important leap of faith assumptions to test next. www.rallydev.com Possible Offers Ideas In n Exploration Enterprise Lean Startup Overview Plausible Offers Adaptive
 Steering! ! Disciplined
 Exploration! ! Empirical
 Learning! ! Agile
 Execution! Knowledge © 2013 Rally Software Development Corp. ©2013! I-2
  • 107. Adaptive
 Steering! ! Disciplined
 Exploration! ! Empirical
 Learning! ! Agile
 Execution! www.rallydev.com @zachnies! ©2013!
  • 108. Iterative & incremental! www.rallydev.com @zachnies! ©2013!
  • 109. Adaptive
 Steering! ! Disciplined
 Exploration! ! Empirical
 Learning! ! Agile
 Execution! www.rallydev.com @zachnies! ©2013!
  • 110. Mentor Checkin Mentor Checkin Mentor Checkin Demo Roll Off Team ok ybo Pl a les Sa Ou Mentor Checkin Demo Operational Review Mentor Checkin Mentor Checkin Mentor Checkin Demo Mentor Checkin Demo Operational Review Mentor Checkin rd clo raft se sa cu or a les p st om ctiv lan er ate wil s. l So lu tio n so Our lve pr s t od h u pr e cu ct id ob st e lem om a er . ’s Mentor Checkin Mentor Checkin Steering Demo ion Vis Quarterly Mentor Checkin W pu e h rs av uin e a gt ni h de te at e a w am xci or te th . st he et Build Experiment Experiment Experiment Measure Learn Co mp let e h Ex ave pe a c rim om en ple t A te 3. d We ze aly An lem ent Imp We pot hes i W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . Hy are Sh ith sw t ult efi es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f e iz gan Or a at o ed t th use ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int y plo De t en . im ts er jec xp ub re ls ou rea ve th ha wi We ning n ru ar We h g va um ave lid en a at t t fa e o o i ct ur nva bas hy lid ed po at th e o es r is. Compare We compared the data collected to our expected results. h fa ave lsi a fy so ou lut r h ion yp th ot at he ca sis n . Collect We have enough data to effectively analyze the results. ent cum Do We have a series of experiments that will test the validity of our top leap of faith assumptions. Design We understand how to build our experiment and measure the results. ze Empathize We understand the perspective of our users & customers. t ef el . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s We have identified the 3 most important leap of faith assumptions to test next. rk Ma Frame Enumerate Assumptions Identify Key Assumptions To Enumerate Experiments We have an updated canvas that reflects our latest learnings and the team has reviewed it. We have a list of assumptions that need to be true for our offer to work. Go box Prepare Review Canvas e, ric , p te ge mo k a ro ac d p . n p n er ca on a off Weositi our p O an c and nS del Mo del ess s mo le. sin nes tab Bu ur bubsei profi tio ova o ing s t rk her s. wo ot ces ve th ro ha s wi ry p We ent ove em disc re ag un a r Turn Uncertainty! Operate We have rolled off everyone from the discovery team who wants to do something new. Into Departments We have budget and a dedicated transition team. Persevere The founders can understand the flow of money and sell the offer. Pivot Founders Can Sell Persevere Problem We understand the problem a customer wants solved. Pivot Team We have a dedicated, cross functional team. Transition Validate Inn Discover We transferred our knowledge into the departments and they can operate the new offer. Form Knowledge © 2013 Rally Software Development Corp. I-2 Into Knowledge! www.rallydev.com @zachnies! ©2013!
  • 111. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/memekiller/4564410767
  • 112. Q Prepare Exploration 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. www.rallydev.com @zachnies! Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. Knowledge ©2013!
  • 113. Enumerate Experiments Exploration Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions Business! ! Identify Key Assumptions ! Feature! We have a list of assumptions that need to be true for our offer to work. 1. User Personas Who is encountering the problems? 2. Problems What problems are these users encountering? We have a series of experiments that will test the validity of our top leap of faith assumptions. Feature Canvas 3. Solution What solutions may make the problems go away? 5. Value We have identified the 3 most important leap of faith assumptions to test next. Circumstances Within what circumstances do these problems exist? 4. Technology What technologies will be used to create the solution? What meaningful and measurable feedback will be gathered from the users? Knowledge 9. Enablement What will be needed to make these users aware of your solution and how it solves their problems? Workarounds How are these problems being solved today? 7. Cost of Development What costs will go into solving the user’s problems? 8. Feedback What value will be created for these users? 6. Cost of Delay What will it cost your business if you don’t solve these problems over a period of time? Adapted from the Lean Canvas (www.leancanvas.com) www.rallydev.com @zachnies! I-1 ©2013!
  • 114. Enumerate Experiments Review Canvas Frame We have an updated canvas that reflects our latest learnings and the team has reviewed it. 4. Solution What solutions may make the problems go away? Reminder for a meaningful Invested giver, Identify Key Assumptions finding People need something some sort of special for reminder to someone give gifts have a good 5. Technology while, but there’s not users What will be needed to make these users aware of Upsell offer Ruby on Rails from flower Human shops connection API Crawler (for Facebook Calendar enough time recurring your solution and how it solves their problems? Knowledge reminders Satisfaction, 9. Enablement What technologies will be used to create the solution? most important leap of Workarounds We have identified the 3 Circumstances Within what test next. faith assumptions to circumstances do these problems exist? How are these problems being solved today? the gift for a offers Non-intrusive People don’t gift idea until Tracking upsell person of We have a series birthdays/gift events experiments that will test the validity of our top leap of faith assumptions. it’s too late Known about Feel like a good upcoming giving gifts nt me We have a list of assumptions that need to be gift true for our offer to work. service for People are late What meaningful and measurable feedback will be gathered from the users? cu Do Spouse looking What value will be created for these users? oth e What problems are these users encountering? Hy p 1. Problems W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . Who is encountering the problems? t ef el . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s 2. User Personas We understand the perspective of our users & customers.Feedback 3. Value 8. siz e Feature Canvas Enumerate Assumptions Empathize Ads during birthdays) Mothers/ Fathers Day MongoDB 7. Cost of Development 6. Cost of Delay What costs will go into solving the user’s problems? Over a period of time, what will it cost your business if you don’t solve these problems? Dev team run Licenses, Normal rate hosting (birthdays) Normal Expedite Fixed Date Fixed date (Valentine’s Day, Mother’s Day) Intangible Adapted from the Lean Canvas (www.leancanvas.com) www.rallydev.com @zachnies! ©2013! I-1
  • 115. Explora 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. www.rallydev.com @zachnies! We have a series of experiments that will test the validity of our top leap of faith assumptions. Knowledge ©2013!
  • 116. 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. Assumptions Canvas Name: Key Assumption Reminders will help gift givers Dependent Assumptions Key Assumption Suggestions will motivate givers Dependent Assumptions We know when We can give giving events reasonable will happen suggestions Text messages are acceptable reminders We can send timely text messages We can get receiver preference data Knowledge Date: Key Assumption Falsified Assumptions We can make money through partner referrals Dependent Assumptions Partners want referral leads We can get Other Assumptions Other Assumptions Facebook adds Recipients will drive want gifts on traffic time A mobile first enough parter product inventory strategy Our leads will buy gifts I-1 www.rallydev.com @zachnies! ©2013!
  • 117. oth e siz e lem ent Imp e e aly z iz gan Or An e ple t Co m are Sh ith sw t ult efi es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f h Ex ave pe a c rim om en ple t A te 3. d Measure We Build Experiment Experiment Experiment ar We h g va um ave lid en a at t t fa e o o i ct ur nva bas hy lid ed po at th e o es r is. Enumerate Experiments a at o ed t th use ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int h fa ave lsi a fy so ou lut r h ion yp th ot at he ca sis n . We y plo De @zachnies! t en . im ts er jec xp ub re ls ou rea ve th ha wi We ning n ru W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . Hy p Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Demo Operational Review Demo Demo Operational Review Demo Demo Steering Persev Pivo lut ion So so Our lve pr s t od h u pr e cu ct id ob st e lem om a er . ’s et nt me cu Do www.rallydev.com boo k Pla y Pivo Team Persev les We have rolled off everyon discovery team who wa something new. Roll Off We transferred our knowle departments and they can new offer. Into Departme We have budget and a d transition team. Sa rd clo raft se sa cu or a les p st om ctiv lan er ate wil s. l Ou rk Ma To Empathize Design Collect Compare We understand the perspective of our users & customers. t ef el . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s We have a series of experiments that will test the validity of our top leap of faith assumptions. Go Frame e, ric , p te ge mo k a ro ac d p . n p n er ca on a off Weositi our p Quarterly O an c del Mo del ess s mo le. sin nes tab Bu ur bubsei profi Key assumptions! Learn We understand how to build our experiment and measure the results. We have enough data to effectively analyze the results. We compared the data collected to our expected results. Knowledge © 2013 Rally Software Development Corp. Knowledge! ©2013! I-2
  • 118. re Enumerate Experiments nvas that reflects our m has reviewed it. E We perspe mptions @zachnies! m www.rallydev.com cu Do umptions We have a series of experiments that will test the validity of our top leap of faith assumptions. t A ed nt let ime mp er co xp ve n E ha f a We e o sid ns that need to be to work. ©2013!
  • 119. hes i pot Hy nt me ze cu Do t ef el . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s lem ent e ze aly iz gan Or An Co m e ple t are Sh ith sw t ult efi es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f h Ex ave pe a c rim om en ple t A te 3. d Measure We Experiment Experiment Experiment ar We h g va um ave lid en a at t t fa e o o i ct ur nva bas hy lid ed po at th e o es r is. Build a at o ed t th use ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int h fa ave lsi a fy so ou lut r h ion yp th ot at he ca sis n . Imp y plo @zachnies! De www.rallydev.com We Frame t en . im ts er jec xp ub re ls ou rea ve th ha wi We ning n ru W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Demo Operational Review Demo Demo Operational Review Demo Demo S so Our lve p st h pr o le We have rol discover We transfer department Int We have t Sa Ou rd clo raf se cu o st o ket , ice pr e e, mot o pr . r ffe Run experiments! Learn Empathize Design Collect Compare We understand the perspective of our users & customers. We understand how to build our experiment and measure the results. We have enough data to effectively analyze the results. We compared the data collected to our expected results. © 2013 Rally Software Development Corp. ©2013! I-2
  • 120. umerate periments Empathize & Frame! Frame Empathize www.rallydev.com @zachnies! ze pot hes i W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . Hy De owledge nt me ave a series of ments that will he validity of p leap of faith sumptions. We build m xp ub re ls ou rea ve th ha wi We ning n ru cu Do t ef el . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s We understand the perspective of our users & customers. ©2013!
  • 121. Empathize! www.rallydev.com @zachnies! ©2013!
  • 122. 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 to Test [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 www.rallydev.com you need a control group to establish a comparison? @zachnies! experiment? Do ©2013!
  • 123. Document! Background: What do you want to learn and why? What guess, assumption, risk, or question are you testing? Experiment Name: What pain or problem is being experienced that’s motivating this experiment? Owner: If you can, write the Problem Statement from the Define worksheet here. Mentor: [Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight]. 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? Hypothesis to Test [Specific repeatable action] will create [expected result]. State your hypothesis as an if/then assertion. Is this hypothesis falsifiable? Validated Learnings Experiment Materials and Method What will you need to run your experiment, both from your team and from others? 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. 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? Ancillary Insights: What else should you explore? Safety: How is the experiment safe to run and how will you undo it? Capture your insights that were gained unintentionally through this experiment.   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. Next Steps: Given what you learned, what’s next? 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 Outcome Validated www.rallydev.com @zachnies! Cycle Time: days Invalidated Cost: $ Inconclusive (Run rate * Cycle Time) + Costs ©2013!
  • 124. Build & Ship! Build Experiment Experiment Experiment M Design lem ent oth e Imp siz e ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . y plo g Or De @zachnies! We h effe t us ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int t en . im ts er jec xp ub re ls ou rea ve th ha wi We ning n ru www.rallydev.com h fa ave lsi a fy so ou lut r h ion yp th ot at he ca sis n . We understand how to build our experiment and measure the results. We he ers & ©2013!
  • 125. Scrum Machine Daily Scrum Product Backlog Refinement Sprint Planning Sprint 1-2 Weeks Burndown Chart Product Backlog www.rallydev.com Sprint Backlog @zachnies! Sprint Demo & Review Sprint Retrospective Product Increment ©2013!
  • 126. Test & Measure! Experiment Experiment Experiment Measure Collect We have enough data to effectively analyze the results. ze aly lem ent e An fa ve lsi a fy so ou lut r h ion yp th ot at he ca sis n . Sh iz gan Or @zachnies! We colle es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f a at o ed t th use ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int www.rallydev.com ar We h g va um ave en a lid at t t fa e o o i ct ur nva bas hy lid ed po at th e o es r is. w to and ts. ©2013!
  • 127. Collect! www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/mrpetersononline/4977025601
  • 128. Analyze! www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/mrpetersononline/4992505907
  • 129. Organize! www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/mrpetersononline/4992505641
  • 130. aly z e @zachnies! rim com en ple t A te 3. d a to the We e Co ha mp let Ex ve pe a e Sh ith sw t ult efi es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f www.rallydev.com are rg h va um ave en a lid at t t fa e o o i ct ur nva bas hy lid ed po at th e o es r is. Learn & Share! Learn Compare We compared the data collected to our expected results. ©2013!
  • 131. Compare! Hypothesis to Test [Specific repeatable Experiment action] will create [expectedthis hypothesis falsifiable? Name: assertion. Is result]. State your hypothesis as an if/then Owner: Experiment Mentor: Materials and Method Start Date: End Date: I-4 What will you need to run your experiment, both from your team and from others? Experiment Results the experiment you plan to run and Describe your results from the experiment. how it can falsify your hypothesis. What steps are needed to run the experiment? Do you need a control group to establish a comparison? Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on? 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? Validated Learnings Describe how you will undo the experiment upon completion or if you discover it is no longer safe to run. 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. www.rallydev.com @zachnies! Variables and Measures ©2013!
  • 132. 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. Experiment Name: Personal Reminder Experiment Owner: Sarah Mentor: Liz Start Date: 8-12 End Date: 8-26 I-4 Experiment Results Quantitative measures: - 10% of participants bought a gift on time Qualitative measures: - Participants were very stress in the buying process Hypothesis to Test Giving a spouse periodic reminders before the gift deadline will cause him to buy a meaningful gift on time. Validated Learnings Experiment Materials and Method Our experiment had no positive effect on the participants. Giving periodic reminders didn’t help him buy a meaningful gift on time - 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? Ancillary Insights: What else should you explore? The reminders actually added to the stress of the situation. - 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. 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. 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 Outcome Validated www.rallydev.com @zachnies! Cycle Time: 10 days Invalidated Cost: $ 8,000 Inconclusive ©2013!
  • 133. Share! www.rallydev.com @zachnies! ©2013!
  • 134. Founders Can Sell The founders can understand the flow of money and sell the offer. Team Mentor Checkin Mentor Checkin Demo We have budget and a dedicated transition team. Pl a Sa les Persevere Pivot ok ybo rd clo raft se sa cu or a les p st om ctiv lan er ate wil s. l Ou Mentor Checkin Demo Operational Review Mentor Checkin Mentor Checkin Mentor Checkin Demo Mentor Checkin Demo Operational Review Mentor Checkin Mentor Checkin Mentor Checkin Persevere Pivot So lu tio n so Our lve pr s t od h u pr e cu ct id ob st e lem om a er . ’s Demo Steering Mentor Checkin Mentor Checkin ion Vis Quarterly et W pu e h rs av uin e a gt ni h de te at e a w am xci or te th . st he rk Ma Build Experiment Experiment Experiment Measure Learn Co mp let e h Ex ave pe a c rim om en ple t A te 3. d We ze aly An lem ent Imp We pot hes i W ou e ha me tcom ve a as e pr ur th ed e a at ict nd we ed fa ca lsi n fy . Hy are Sh ith sw t ult efi es ben e. g er th uld led ed co w ar ho no sh e w he k We hos m t t ro f e iz gan Or a at o ed t th use ed e rn n w tu io y. ve at tor ha orm a s Weo inf tell int y plo De t en . im ts er jec xp ub re ls ou rea ve th ha wi We ning n ru ar We h g va um ave lid en a at t t fa e o o i ct ur nva bas hy lid ed po at th e o es r is. Compare We compared the data collected to our expected results. h fa ave lsi a fy so ou lut r h ion yp th ot at he ca sis n . Collect We have enough data to effectively analyze the results. ent cum Do We have a series of experiments that will test the validity of our top leap of faith assumptions. Design We understand how to build our experiment and measure the results. ze Empathize We understand the perspective of our users & customers. t ef el . th A3 ed nt let ime mp er co xp ve n E ha f a Weide o s We have identified the 3 most important leap of faith assumptions to test next. To Frame Enumerate Assumptions Identify Key Assumptions Go box Enumerate Experiments We have an updated canvas that reflects our latest learnings and the team has reviewed it. We have a list of assumptions that need to be true for our offer to work. e, ric , p te ge mo k a ro ac d p . n p n er ca on a off Weositi our p O an c and nS del Mo del ess s mo le. sin nes tab Bu ur bubsei profi tio ova o ing s t rk her s. wo ot ces ve th ro ha s wi ry p We ent ove em disc re ag un a r Inn Prepare Review Canvas Operate Roll Off Problem We understand the problem a customer wants solved. Empirical Learning! Team We have a dedicated, cross functional team. Transition We have rolled off everyone from the discovery team who wants to do something new. Validate Into Departments Discover We transferred our knowledge into the departments and they can operate the new offer. Form Knowledge © 2013 Rally Software Development Corp. www.rallydev.com @zachnies! ©2013! I-2
  • 135. www.rallydev.com @zachnies! http://www.richard-feynman.net/gallery.htm ©2013!
  • 136. www.rallydev.com @zachnies! ©2013!
  • 137. Example! www.rallydev.com @zachnies! ©2013!
  • 138. 1996 www.rallydev.com @zachnies! ©2013!
  • 139. Leap of faith assumption?! www.rallydev.com @zachnies! ©2013!
  • 140. 30-min Delivery 1996 www.rallydev.com @zachnies! ©2013!
  • 141. ~$800M IPO & private investors 1996 $8.5B Mkt Cap www.rallydev.com @zachnies! 30-min Delivery ©2013!
  • 142. ~$800M IPO & private investers 1996 $8.5B Mkt Cap 4.5k employees 30-min Delivery $1B Warehouses 26 cities www.rallydev.com @zachnies! ©2013!
  • 143. ~$800M IPO & private investers 1996 $8.5B Mkt Cap 4.5k employees 30-min Delivery $1B Warehouses 26 cities $1.4B HomeGrocer www.rallydev.com @zachnies! ©2013!
  • 144. ~$800M IPO & private investers 1996 $8.5B Mkt Cap 4.5k employees IPO to bankrupt in <2 years 30-min Delivery $1B Warehouses 26 cities $1.4B HomeGrocer www.rallydev.com @zachnies! ©2013!
  • 145. ~$800M IPO & private investers 1996 $8.5B Mkt Cap 4.5k employees IPO to bankrupt in <2 years 30-min Delivery $1B Warehouses 26 cities $1.4B HomeGrocer ~$130 loss per order www.rallydev.com @zachnies! ©2013!
  • 146. www.rallydev.com @zachnies! ©2013!
  • 147. Leap of faith assumption?! www.rallydev.com @zachnies! ©2013!
  • 148. Nick Swinmurn! Founder, Zappos! http://www.thecmosite.com/author.asp?section_id=1137&doc_id=236069 www.rallydev.com @zachnies! http://www.seanpercival.com/blog/2012/10/21/pre-inventory-startups/ ©2013!
  • 149. TAKE EACH MAJOR ASSUMPTION! www.rallydev.com @zachnies! ©2013!
  • 150. RUN AN EXPERIMENT! www.rallydev.com @zachnies! ©2013!
  • 151. www.rallydev.com @zachnies! ©2013! http://www.youtube.com/watch?v=Iyjs3zeoSrM
  • 152. www.rallydev.com @zachnies! ©2013!
  • 153. www.rallydev.com @zachnies! ©2013!
  • 154. Adaptive
 Steering! ! Disciplined
 Exploration! ! Empirical
 Leaning! ! Agile
 Execution! www.rallydev.com @zachnies! ©2013!
  • 155. Exploration! www.rallydev.com @zachnies! ©2013!
  • 156. Adopting something new is a human phenomenon ! www.rallydev.com @zachnies! ©2013!
  • 157. Not a technological phenomenon ! www.rallydev.com @zachnies! ©2013!
  • 158. An example…! www.rallydev.com @zachnies! ©2013!
  • 159. www.rallydev.com @zachnies! ©2013!
  • 160. Need an Agile and human centered approach! www.rallydev.com @zachnies! ©2013!
  • 161. Extend Agility into your business! www.rallydev.com @zachnies! ©2013!
  • 162. Adaptive
 Steering! ! Disciplined
 Exploration! ! Empirical
 Leaning! ! Agile
 Execution! www.rallydev.com @zachnies! ©2013!
  • 163. Take advantage of market opportunities! www.rallydev.com @zachnies! ©2013!
  • 164. What happened to this company?! www.rallydev.com @zachnies! ©2013!
  • 165. www.rallydev.com @zachnies! ©2013!
  • 166. www.rallydev.com @zachnies! ©2013!
  • 167. 1 Began Experimentation 2 $50M in New Product Revenue 3 1800 Concurrent Experiments 1 www.rallydev.com @zachnies! 2 3 ©2013!
  • 168. Books that informed this talk! www.rallydev.com @zachnies! ©2013!
  • 169. People who informed this talk! Geoffrey
 Moore! www.rallydev.com @zachnies! Tim
 Brown! Ash
 Maurya! John & George Kembel! David Snowden! Eric
 Ries! Clayton
 Christensen! Steve
 Blank! ©2013!
  • 170. Go Agile. Go Rally.! www.rallydev.com @zachnies! ©2013!