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How do we know we’re delivering value,
quality, and having a beneficial impact?
Presented by Kevin Burns
@
Agile Day Twin Cities
November 17, 2017
@kevinbburns, kburns@sagesw.com
1
2
David Hussman
Kevin Burns
Agile/Lean Product Development Coach
Org Change Agent
@kevinbburns, kburns@sagesw.com
3
4
http://modernagile.org/
@kevinbburns, kburns@sagesw.com
Merging Product Discovery and Product Delivery
5
http://productagility.org/
@kevinbburns, kburns@sagesw.com
Themes to achieving
Quality,
Value,
and
Making a Difference…
• Transparency
• Caring
• Continuous Learning
• Measures
6
@kevinbburns, kburns@sagesw.com
Transparency
How transparent are you?
7@kevinbburns, kburns@sagesw.com
8@kevinbburns, kburns@sagesw.com
9
Robert M. Pirsig September 6, 1928 – April 24, 2017
@kevinbburns, kburns@sagesw.com
10
And what is good,
Phaedrus,
And what is not good –
Need we ask anyone to
tell us these things?
@kevinbburns, kburns@sagesw.com
11
The place to improve the world is first in one's own heart and
head and hands, and then work outward from there. - Robert M. Pirsig
@kevinbburns, kburns@sagesw.com
Is value determined by delivery on time, on budget, and on scope?
Are they using everything we delivered?
12
Is the scope delighting the customer?
@kevinbburns, kburns@sagesw.com
Assumptions
Challenged?
3 things we wish were true
• Customers knows what they want
• Developers know how to build it
• Nothing will change along the way
13
3 things we have to live with
• Impact isn’t known until software is
used in production
• Developers discover how to build it
• Many things change along the way
@kevinbburns, kburns@sagesw.com
How transparent is
your org today?
Transparency leads to…
• Accountability
• Psychological safety
• Creativity
• Innovation
• Opportunity
• Ideas
14@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 15
kburns@sagesw.com, @kevinbburns 16
kburns@sagesw.com, @kevinbburns 17
18
Caring
What do you care about?
@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 19@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 20@kevinbburns, kburns@sagesw.com
21@kevinbburns, kburns@sagesw.com
22
Are you proud of what you’ve built?
@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 23@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 24@kevinbburns, kburns@sagesw.com
Business resilience isn’t only about innovation and money, it’s also
about social and environmental responsibility.
Does society see us as having a socially redeemable pursuit?
Are we behaving ethically?
25@kevinbburns, kburns@sagesw.com
Building an ideal work environment
26@kevinbburns, kburns@sagesw.com
27
Continuous Learning
The Search for Truth
@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 28
Didactic and binary
challenge
29
• Esthetic vs Classical
• Artistic vs Technological
• Subjective vs Objective
• Metaphysic vs Scientific
• Methos vs Logos (myth vs logic)
• Mind vs Matter
• Dialogue vs Rhetoric
• Plutonic vs Socratic
• 0 vs 1
@kevinbburns, kburns@sagesw.com
Quality is no longer The Problem…
Analysis is The Problem
The problem is with logic and rational thought.
In order to be able to reason, we need to be able to define things.
Without definition, we can’t reason.
If we can’t define Quality, we have a problem with Analysis.
30Zen and the art of motorcycle maintenance page 196. @kevinbburns, kburns@sagesw.com
What do you see?
Seven Habits of Highly Effective People - Stephen Covey
31@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 32
Were these cake instructions implemented correctly?
Was the customer delighted?
@kevinbburns, kburns@sagesw.com
34
Social economics and unconventional wisdom change the game.
@kevinbburns, kburns@sagesw.com
Is Quality subjective? Is Truth Relative? Are Facts
Alternative? Is News Fake?
35Zen and the art of motorcycle maintenance page205-223.
“Does this undefined ‘quality’ of yours exist in the things we observe?” they asked,
“Or is it subjective, existing only in the observer?”
Therefore, quality is just a fancy name for whatever you like.
Is what we like truly subjective or has it been programed by society?
Quality is neither subjective nor objective. If it’s defined by the Observer, where did
the observer get his/her thoughts…from society?
It’s monism. It’s above mind and matter.
@kevinbburns, kburns@sagesw.com
Are you purposely
injecting chaos into
your environment
to see how resilient
it is?
36@kevinbburns, kburns@sagesw.com
37
Measures
What’s your single
most important
measure?
@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 38
If I had an hour to solve a problem
and my life depended on the
solution, I would spend the first
55 minutes determining the
proper question to ask, for once I
know the proper question, I could
solve the problem in less than five
minutes.
Albert Einstein
@kevinbburns, kburns@sagesw.com
kburns@sagesw.com, @kevinbburns 40
kburns@sagesw.com, @kevinbburns 41
Which measures are
meaningful & why?
42@kevinbburns, kburns@sagesw.com
Strategizing what to measure
KPI’s – Key Performance Indicators
OKR – Objective and Key Results
Market Differentiation Strategy – Value/Quality,
Convenience, Price
@kevinbburns, kburns@sagesw.com
Direct
Customer/Prospect
Feedback Methods
• Interview (in-person/phone)
• Survey/Poll
• Email/Chat
• Focus Groups
• Observation
• Usability Testing
44@kevinbburns, kburns@sagesw.com
Indirect Feedback
Methods
• A/B Testing
• Progressive Testing
• Click-through rates
• Abandonment rates
• Conversation rates
• Net Promoter
• Social media
• 3rd party data (Nielsen, Gallup, LexisNexis, etc)
45@kevinbburns, kburns@sagesw.com
Be careful about
what you think
you’ve learned
• What people say they would pay, isn’t
what they would actually pay.
• What a user says they want and what
they actually need (or want) are two
different things.
• Users and buyers aren’t always the
same person.
• Users are very different (as are buyers)
• 70% of IoT innovation is stuck in POC
46@kevinbburns, kburns@sagesw.com
47
It’s the unknown unknowns and
epistemic arrogance that kills
@kevinbburns, kburns@sagesw.com
48
Can we learn from our experience and
focus on the signal in the noise?
Bad science is 70% behaviorally based
Half of all scientific research isn’t trust worthy
Lies – Damn Lies - Statistics
@kevinbburns, kburns@sagesw.com
Pirsig’s Scientific Method
1. State Problem,
2. Hypothesis cause of problem,
3. Design Experiments to test hypothesis,
4. Predict results,
5. Observed results, and
6. Draw Conclusions.
The real purpose of scientific method is to make sure Nature hasn’t
misled you into thinking you know something you don’t actually know.
49Zen and the art of motorcycle maintenance page 93. @kevinbburns, kburns@sagesw.com
Mind your hubris
50
@kevinbburns, kburns@sagesw.com
51
It is a puzzling thing. The truth knocks on the door and you say,
"Go away, I'm looking for the truth," and so it goes away. Puzzling.
- Robert M. Pirsig
@kevinbburns, kburns@sagesw.com
52@kevinbburns, kburns@sagesw.com
User, Customer, Client
Business
Valuable
Design Usable
Software EngineeringBusiness Sponsor
Technically
Feasible
Do you have the right balance to deliver Quality, Value, & Innovation?
Quality
Innovation
Value
@kevinbburns, kburns@sagesw.com
Do you have the right balance?
@kevinbburns, kburns@sagesw.com
Impact-Drive Development
55@kevinbburns, kburns@sagesw.com
56@kevinbburns, kburns@sagesw.com
How to measure anything – Douglas Hubbard
http://www.howtomeasureanything.com/
57@kevinbburns, kburns@sagesw.com
Measurement Basics
• A measurement is an observation that quantitatively reduces uncertainty.
• A good object of measurement is something that is clearly defined and it’s observable.
• Uncertainty is the lack of certainty: the true outcome/state/value is not known.
• Risk is a state of uncertainty in which some of the possibilities involve a loss.
• Much pessimism about measurement comes from a lack of experience
• Your problem is not as unique as you think.
• You have more data than you think.
• You need less data than you think.
• An adequate amount of new data is more accessible than you think.
Douglas Hubbard
@kevinbburns, kburns@sagesw.com
Select a measurement
method
59
To figure out which category of measurement
methods are appropriate for a particular case, we
must ask several questions:
1. Decomposition: Which parts of the thing
are we uncertain about?
2. Secondary research: How has the thing
(or its parts) been measured by others?
3. Observation: How do the identified
observables lend themselves to
measurement?
4. Measure just enough: How much do we
need to measure it?
5. Consider the error: How might our
observations be misleading?
@kevinbburns, kburns@sagesw.com
Conclusion
• Customers don’t always know what they want
• People don’t buy features they buy benefits
• The value you’re offering isn’t unique…it is evaluated in terms of it’s relationship
to what they already have, know or use (substitution cost)
• People will buy your product at a price commensurate with perceived benefits
received at a cost lower than your competitor or some other substitution cost
• Given this, how fast can you find-out whether you’re on the right track
@kevinbburns, kburns@sagesw.com
Questions
&
Next Steps
• How many of us know what
business/user outcomes and impacts
we’re trying to achieve?
• Do we have the right people and
metrics in place to evaluate our
progress as well as how successfully
we’re achieving the outcomes and
impacts we’re intending?
• Who want’s help creating some
objective measures?
61
@kevinbburns, kburns@sagesw.com
42
62
Life, the Universe, and Everything
@kevinbburns, kburns@sagesw.com
?
63
@kevinbburns, kburns@sagesw.com

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How do you know you are delivering value agile day twin cities 11-17-2017 with poll results

  • 1. How do we know we’re delivering value, quality, and having a beneficial impact? Presented by Kevin Burns @ Agile Day Twin Cities November 17, 2017 @kevinbburns, kburns@sagesw.com 1
  • 2. 2 David Hussman Kevin Burns Agile/Lean Product Development Coach Org Change Agent @kevinbburns, kburns@sagesw.com
  • 3. 3
  • 5. Merging Product Discovery and Product Delivery 5 http://productagility.org/ @kevinbburns, kburns@sagesw.com
  • 6. Themes to achieving Quality, Value, and Making a Difference… • Transparency • Caring • Continuous Learning • Measures 6 @kevinbburns, kburns@sagesw.com
  • 7. Transparency How transparent are you? 7@kevinbburns, kburns@sagesw.com
  • 9. 9 Robert M. Pirsig September 6, 1928 – April 24, 2017 @kevinbburns, kburns@sagesw.com
  • 10. 10 And what is good, Phaedrus, And what is not good – Need we ask anyone to tell us these things? @kevinbburns, kburns@sagesw.com
  • 11. 11 The place to improve the world is first in one's own heart and head and hands, and then work outward from there. - Robert M. Pirsig @kevinbburns, kburns@sagesw.com
  • 12. Is value determined by delivery on time, on budget, and on scope? Are they using everything we delivered? 12 Is the scope delighting the customer? @kevinbburns, kburns@sagesw.com
  • 13. Assumptions Challenged? 3 things we wish were true • Customers knows what they want • Developers know how to build it • Nothing will change along the way 13 3 things we have to live with • Impact isn’t known until software is used in production • Developers discover how to build it • Many things change along the way @kevinbburns, kburns@sagesw.com
  • 14. How transparent is your org today? Transparency leads to… • Accountability • Psychological safety • Creativity • Innovation • Opportunity • Ideas 14@kevinbburns, kburns@sagesw.com
  • 18. 18 Caring What do you care about? @kevinbburns, kburns@sagesw.com
  • 22. 22 Are you proud of what you’ve built? @kevinbburns, kburns@sagesw.com
  • 25. Business resilience isn’t only about innovation and money, it’s also about social and environmental responsibility. Does society see us as having a socially redeemable pursuit? Are we behaving ethically? 25@kevinbburns, kburns@sagesw.com
  • 26. Building an ideal work environment 26@kevinbburns, kburns@sagesw.com
  • 27. 27 Continuous Learning The Search for Truth @kevinbburns, kburns@sagesw.com
  • 29. Didactic and binary challenge 29 • Esthetic vs Classical • Artistic vs Technological • Subjective vs Objective • Metaphysic vs Scientific • Methos vs Logos (myth vs logic) • Mind vs Matter • Dialogue vs Rhetoric • Plutonic vs Socratic • 0 vs 1 @kevinbburns, kburns@sagesw.com
  • 30. Quality is no longer The Problem… Analysis is The Problem The problem is with logic and rational thought. In order to be able to reason, we need to be able to define things. Without definition, we can’t reason. If we can’t define Quality, we have a problem with Analysis. 30Zen and the art of motorcycle maintenance page 196. @kevinbburns, kburns@sagesw.com
  • 31. What do you see? Seven Habits of Highly Effective People - Stephen Covey 31@kevinbburns, kburns@sagesw.com
  • 32. kburns@sagesw.com, @kevinbburns 32 Were these cake instructions implemented correctly? Was the customer delighted? @kevinbburns, kburns@sagesw.com
  • 33. 34 Social economics and unconventional wisdom change the game. @kevinbburns, kburns@sagesw.com
  • 34. Is Quality subjective? Is Truth Relative? Are Facts Alternative? Is News Fake? 35Zen and the art of motorcycle maintenance page205-223. “Does this undefined ‘quality’ of yours exist in the things we observe?” they asked, “Or is it subjective, existing only in the observer?” Therefore, quality is just a fancy name for whatever you like. Is what we like truly subjective or has it been programed by society? Quality is neither subjective nor objective. If it’s defined by the Observer, where did the observer get his/her thoughts…from society? It’s monism. It’s above mind and matter. @kevinbburns, kburns@sagesw.com
  • 35. Are you purposely injecting chaos into your environment to see how resilient it is? 36@kevinbburns, kburns@sagesw.com
  • 36. 37 Measures What’s your single most important measure? @kevinbburns, kburns@sagesw.com
  • 38. If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes. Albert Einstein @kevinbburns, kburns@sagesw.com
  • 41. Which measures are meaningful & why? 42@kevinbburns, kburns@sagesw.com
  • 42. Strategizing what to measure KPI’s – Key Performance Indicators OKR – Objective and Key Results Market Differentiation Strategy – Value/Quality, Convenience, Price @kevinbburns, kburns@sagesw.com
  • 43. Direct Customer/Prospect Feedback Methods • Interview (in-person/phone) • Survey/Poll • Email/Chat • Focus Groups • Observation • Usability Testing 44@kevinbburns, kburns@sagesw.com
  • 44. Indirect Feedback Methods • A/B Testing • Progressive Testing • Click-through rates • Abandonment rates • Conversation rates • Net Promoter • Social media • 3rd party data (Nielsen, Gallup, LexisNexis, etc) 45@kevinbburns, kburns@sagesw.com
  • 45. Be careful about what you think you’ve learned • What people say they would pay, isn’t what they would actually pay. • What a user says they want and what they actually need (or want) are two different things. • Users and buyers aren’t always the same person. • Users are very different (as are buyers) • 70% of IoT innovation is stuck in POC 46@kevinbburns, kburns@sagesw.com
  • 46. 47 It’s the unknown unknowns and epistemic arrogance that kills @kevinbburns, kburns@sagesw.com
  • 47. 48 Can we learn from our experience and focus on the signal in the noise? Bad science is 70% behaviorally based Half of all scientific research isn’t trust worthy Lies – Damn Lies - Statistics @kevinbburns, kburns@sagesw.com
  • 48. Pirsig’s Scientific Method 1. State Problem, 2. Hypothesis cause of problem, 3. Design Experiments to test hypothesis, 4. Predict results, 5. Observed results, and 6. Draw Conclusions. The real purpose of scientific method is to make sure Nature hasn’t misled you into thinking you know something you don’t actually know. 49Zen and the art of motorcycle maintenance page 93. @kevinbburns, kburns@sagesw.com
  • 50. 51 It is a puzzling thing. The truth knocks on the door and you say, "Go away, I'm looking for the truth," and so it goes away. Puzzling. - Robert M. Pirsig @kevinbburns, kburns@sagesw.com
  • 52. User, Customer, Client Business Valuable Design Usable Software EngineeringBusiness Sponsor Technically Feasible Do you have the right balance to deliver Quality, Value, & Innovation? Quality Innovation Value @kevinbburns, kburns@sagesw.com
  • 53. Do you have the right balance? @kevinbburns, kburns@sagesw.com
  • 56. How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ 57@kevinbburns, kburns@sagesw.com
  • 57. Measurement Basics • A measurement is an observation that quantitatively reduces uncertainty. • A good object of measurement is something that is clearly defined and it’s observable. • Uncertainty is the lack of certainty: the true outcome/state/value is not known. • Risk is a state of uncertainty in which some of the possibilities involve a loss. • Much pessimism about measurement comes from a lack of experience • Your problem is not as unique as you think. • You have more data than you think. • You need less data than you think. • An adequate amount of new data is more accessible than you think. Douglas Hubbard @kevinbburns, kburns@sagesw.com
  • 58. Select a measurement method 59 To figure out which category of measurement methods are appropriate for a particular case, we must ask several questions: 1. Decomposition: Which parts of the thing are we uncertain about? 2. Secondary research: How has the thing (or its parts) been measured by others? 3. Observation: How do the identified observables lend themselves to measurement? 4. Measure just enough: How much do we need to measure it? 5. Consider the error: How might our observations be misleading? @kevinbburns, kburns@sagesw.com
  • 59. Conclusion • Customers don’t always know what they want • People don’t buy features they buy benefits • The value you’re offering isn’t unique…it is evaluated in terms of it’s relationship to what they already have, know or use (substitution cost) • People will buy your product at a price commensurate with perceived benefits received at a cost lower than your competitor or some other substitution cost • Given this, how fast can you find-out whether you’re on the right track @kevinbburns, kburns@sagesw.com
  • 60. Questions & Next Steps • How many of us know what business/user outcomes and impacts we’re trying to achieve? • Do we have the right people and metrics in place to evaluate our progress as well as how successfully we’re achieving the outcomes and impacts we’re intending? • Who want’s help creating some objective measures? 61 @kevinbburns, kburns@sagesw.com
  • 61. 42 62 Life, the Universe, and Everything @kevinbburns, kburns@sagesw.com