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How do you know you are delivering value lean meetup with polling results

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Presented by Kevin Burns at the Lean Startup Circle MN Sept. 7, 2017. Kevin merged concepts from many influential authors into a group discussion regarding measuring value in our business environments.

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How do you know you are delivering value lean meetup with polling results

  1. 1. Measuring Value in Lean Product Development 6:00 PM - Welcome/Networking 6:15 PM - Presentation 6:45 PM - Group Discussion 7:00 PM - Networking Thursday, September 7, 2017
  2. 2. Acknowledgments NICK THEISEN PHOTOGRAPHY
  3. 3. 3 David Hussman Kevin Burns Lean Product Development Coach Org Change Agent
  4. 4. History and Experience kburns@sagesw.com, @kevinbburns 4
  5. 5. 5
  6. 6. Themes to achieving Value, Quality and Beneficial Impact • Transparency • Caring • Continuous Learning • Measures 6
  7. 7. Transparency kburns@sagesw.com, @kevinbburns 7
  8. 8. 8
  9. 9. kburns@sagesw.com, @kevinbburns 9 Robert M. Pirsig September 6, 1928 – April 24, 2017
  10. 10. 10 And what is good, Phaedrus, And what is not good – Need we ask anyone to tell us these things?
  11. 11. kburns@sagesw.com, @kevinbburns 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
  12. 12. Is value determined by delivery on time, on budget, and on scope? Are they using everything we delivered? kburns@sagesw.com, @kevinbburns 12 Is the scope delighting the customer?
  13. 13. In a survey of 4 products, 65% of the features were rarely or never used. How much money could have been saved if we never built them? kburns@sagesw.com, @kevinbburns 13
  14. 14. Assumptions Challenged? 3 things we wish were true • Customer knows what they want • Developers know how to build it • Nothing will change along the way 14 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
  15. 15. How transparent is your org today? Transparency leads to… • Accountability • Psychological safety • Creativity • Innovation • Opportunity • Ideas 15
  16. 16. kburns@sagesw.com, @kevinbburns 16
  17. 17. kburns@sagesw.com, @kevinbburns 17
  18. 18. kburns@sagesw.com, @kevinbburns 18
  19. 19. kburns@sagesw.com, @kevinbburns 19 Caring
  20. 20. kburns@sagesw.com, @kevinbburns 20
  21. 21. kburns@sagesw.com, @kevinbburns 21
  22. 22. kburns@sagesw.com, @kevinbburns 22
  23. 23. kburns@sagesw.com, @kevinbburns 23 Are you proud of what you’ve built?
  24. 24. kburns@sagesw.com, @kevinbburns 24
  25. 25. kburns@sagesw.com, @kevinbburns 25
  26. 26. 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 or goal? Are we behaving ethically? kburns@sagesw.com, @kevinbburns 26
  27. 27. kburns@sagesw.com, @kevinbburns 27 Continuous Learning
  28. 28. kburns@sagesw.com, @kevinbburns 28
  29. 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
  30. 30. What do you see? Seven Habits of Highly Effective People - Stephen Covey 30
  31. 31. kburns@sagesw.com, @kevinbburns 31 Were these cake instructions implemented correctly? Was the customer delighted?
  32. 32. Pirsig changed view of Reality to be Quality First kburns@sagesw.com, @kevinbburns 32 Reality Quality Pheadrus was teaching Quality Pheadrus should be teaching Romantic (Emotional)Classic (Intellectual) Objective (Physical)Subjective (Mental) Quality (Reality) Objective Reality (Matter) Subjective Reality (Mind) Classic Quality (Intellectual Reality) Romantic Quality (Preintellectual Reality) Zen and the art of motorcycle maintenance page 223.
  33. 33. Pirsig in pursuit of Truth What is the truth and how do you know it when you have it? . . . How do we really ‘know’ anything? Is there an “I,” a “soul,” which knows, or is this soul merely cells coordinating senses? . . . Is reality basically changing, or is it fixed and permanent? . . . When it’s said that something means something, what’s meant by that? kburns@sagesw.com, @kevinbburns 33Zen and the art of motorcycle maintenance page 112.
  34. 34. Quality is no longer The Problem Pirsig became comfortable with the fact that quality isn’t definable. It’s something intuitive. Not of the scientific world nor the esthetic world. Neither classic nor artistic. Neither mind nor matter. The new problem became analysis itself. He found a problem with logic and rational thought. In order for us to be able to reason, we need to be able to define things. Without definition, there can’t be reason. If we can’t define Quality, we have a problem with Analysis. kburns@sagesw.com, @kevinbburns 34Zen and the art of motorcycle maintenance page 196.
  35. 35. kburns@sagesw.com, @kevinbburns 35 Social economics and unconventional wisdom change the game.
  36. 36. Is Quality subjective? Is Truth Relative? Are Facts Alternative? Is News Fake? kburns@sagesw.com, @kevinbburns 36Zen 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 what every 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.
  37. 37. Are you purposely injecting chaos into your environment to see how resilient it is? kburns@sagesw.com, @kevinbburns 37
  38. 38. kburns@sagesw.com, @kevinbburns 38 Measures
  39. 39. kburns@sagesw.com, @kevinbburns 39
  40. 40. 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. kburns@sagesw.com, @kevinbburns Albert Einstein
  41. 41. kburns@sagesw.com, @kevinbburns 41
  42. 42. kburns@sagesw.com, @kevinbburns 42
  43. 43. Which measures are meaningful & why? kburns@sagesw.com, @kevinbburns 43
  44. 44. Strategizing what to measure KPI’s – Key Performance Indicators OKR – Objective and Key Results Market Differentiation Strategy – Value/Quality, Convenience, Price
  45. 45. Direct Customer/Prospect Feedback Methods • Interview (in-person/phone) • Survey/Poll • Email/Chat • Focus Groups • Observation • Usability Testing 45
  46. 46. 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) 46
  47. 47. Be careful about what you think you’ve learned • What people say they would pay, isn’t typically 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 47
  48. 48. kburns@sagesw.com, @kevinbburns 48 It’s the unknown unknowns and epistemic arrogance that kills
  49. 49. kburns@sagesw.com, @kevinbburns 49 Can we learn from our experience and focus on the signal in the noise?
  50. 50. Pirsig’s Scientific Method 1. Statement of the problem, 2. Hypothesis as to the cause of the problem, 3. Experiments designed to test each hypothesis, 4. Predict results of the experiments, 5. Observed results of the experiments, and 6. Conclusions from the results of the experiments, 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. kburns@sagesw.com, @kevinbburns 50Zen and the art of motorcycle maintenance page 93.
  51. 51. Mind your hubris kburns@sagesw.com, @kevinbburns 51
  52. 52. kburns@sagesw.com, @kevinbburns 52 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
  53. 53. kburns@sagesw.com, @kevinbburns 53
  54. 54. kburns@sagesw.com, @kevinbburns 54
  55. 55. Marty Cagan • Customers don’t know what they want. It’s very hard to envision the solution you want without actually seeing it. • At least 2/3 of our ideas are never going to work. The other 1/3 will take 3-4 iterations to get right. • The role of the product manager is to discover a product that is valuable, usable, and feasible. Product, design, and engineering work together to arrive at optimal solution.
  56. 56. 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
  57. 57. Do you have the right balance?
  58. 58. kburns@sagesw.com, @kevinbburns 58 Quality Value
  59. 59. Lean Startup • Are we asking what are Minimum Viable (Valuable) Product and how do we know when we’ve delivered it? • Use a scientific method to measure, learn and pivot or preserver. • Use meaningful quantitative objective measure to evaluate impact. • Can you use A/B testing? kburns@sagesw.com, @kevinbburns 59
  60. 60. Impact-Drive Development kburns@sagesw.com, @kevinbburns 60
  61. 61. kburns@sagesw.com, @kevinbburns 61
  62. 62. Merging Product Discovery and Product Delivery kburns@sagesw.com, @kevinbburns 62 http://productagility.org/
  63. 63. Iterative Discovery and Delivery Model Hypothesis Ideas Build and Validate Iterative Stable Team Delivery Project/Release Planning kburns@sagesw.com, @kevinbburns
  64. 64. Value and/or Impact driven culture • Are we measuring the Cost vs Benefit at all levels of our work items? • Portfolio • Program • Project • Feature/Capability • Story/Requirement • Tasks/Test • Are we measuring the Impact our features have on our customers? • The act of sizing helps us define done and what the really valuable work is • Using story telling and test statements create understanding of value and DoD kburns@sagesw.com, @kevinbburns 64
  65. 65. kburns@sagesw.com, @kevinbburns 65
  66. 66. How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ kburns@sagesw.com, @kevinbburns 66
  67. 67. 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
  68. 68. Select a measurement method 68 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?
  69. 69. 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
  70. 70. 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 evaluation 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? 70
  71. 71. 42 kburns@sagesw.com, @kevinbburns 71
  72. 72. Thank You Keep in Touch @LSUpMn www.meetup.com/LSUpMn Next Event Thursday, October 5, 2017

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