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How do you know you are delivering value minnebar13 - 4-13-18 with poll results

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In honor of Robert M. Pirsig, author of Zen and the Art of Motorcycle Maintenance, let’s have a Chautauqua on quality and value how we’re measuring it. Piggy-backing on last year’s theme from the Twin Cities Agile Day, we’re part of an AntiFrAgile organization if we’re measuring the right stuff. Are we measuring the right stuff? How do you know? I’ll share some philosophy, thoughts, and experience to start our discussion. We’ll use a polling tool to make the discussion interactive, participatory, and allow you to share your stories and experience.

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How do you know you are delivering value minnebar13 - 4-13-18 with poll results

  1. 1. 4/14/2018 1 How do we know we’re delivering value, quality, and having a beneficial impact? Presented by Kevin Burns @ April 14, 2018 BestBuy HQ 1 @kevinbburns, kburns@sagesw.com 2 David Hussman Kevin Burns Agile/Lean Product Development Coach Org Change Agent History and Experience 3 4 Themes to achieving Value, Quality and Beneficial Impact • Transparency • Caring • Continuous Learning • Measures 5 Transparency How transparent are you? 6
  2. 2. 4/14/2018 2 7@kevinbburns, kburns@sagesw.com 3 Volunteers What’s your favorite book on Quality? kburns@sagesw.com, @kevinbburns 8 9 Robert M. Pirsig September 6, 1928 – April 24, 2017 10 And what is good, Phaedrus, And what is not good – Need we ask anyone to tell us these things? 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 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?
  3. 3. 4/14/2018 3 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? 13 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 How transparent is your org today? Transparency leads to… • Accountability • Psychological safety • Creativity • Innovation • Opportunity • Ideas 15 kburns@sagesw.com, @kevinbburns 16 kburns@sagesw.com, @kevinbburns 17 kburns@sagesw.com, @kevinbburns 18
  4. 4. 4/14/2018 4 Westrum Model: How orgs process info Pathological Bureaucratic Generative Power oriented Rule oriented Performance oriented Low cooperation Modest cooperation High cooperation Messengers shot Messengers neglected Messengers trained Responsibilities shirked Narrow responsibilities Risks are shared Bridging discouraged Bridging tolerated Bridging encouraged Failure scapegoating Failure justice Failure inquiry Novelty crushed Novelty problems Novelty implemented kburns@sagesw.com, @kevinbburns19 20 Caring What do you care about? kburns@sagesw.com, @kevinbburns 21 People don’t care what you do, they care why you do it. kburns@sagesw.com, @kevinbburns 22 kburns@sagesw.com, @kevinbburns 23 24
  5. 5. 4/14/2018 5 25 Are you proud of what you’ve built? kburns@sagesw.com, @kevinbburns 26 kburns@sagesw.com, @kevinbburns 27 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? 28 Do you have an environment people thrive in? kburns@sagesw.com, @kevinbburns 29 30 Continuous Learning The Search for Truth
  6. 6. 4/14/2018 6 kburns@sagesw.com, @kevinbburns 31 Didactic and binary challenge 32 • 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 • Ying vs yang • 0 vs 1 What do you see? Seven Habits of Highly Effective People - Stephen Covey 33 kburns@sagesw.com, @kevinbburns 34 Were these cake instructions implemented correctly? Was the customer delighted? Pirsig changed view of Reality to be Quality First 35 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. 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? 36Zen and the art of motorcycle maintenance page 112.
  7. 7. 4/14/2018 7 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. 37Zen and the art of motorcycle maintenance page 196. 38 Social economics and unconventional wisdom change the game. Is Quality subjective? Is Truth Relative? Are Facts Alternative? Is News Fake? 39Zen 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. Are you purposely injecting chaos into your environment to see how resilient it is? 40 41 Measures What’s your single most important measure? kburns@sagesw.com, @kevinbburns 42
  8. 8. 4/14/2018 8 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 kburns@sagesw.com, @kevinbburns 44 Which measures are meaningful & why? 45 Strategizing what to measure KPI’s – Key Performance Indicators OKR – Objective and Key Results Market Differentiation Strategy – Value/Quality, Convenience, Price Market Disruption – Changes the rules of the game Direct Customer/Prospect Feedback Methods • Interview (in-person/phone) • Survey/Poll • Email/Chat • Focus Groups • Observation • Usability Testing 47 Indirect Feedback Methods • A/B Testing • Progressive Testing / Canary Releases • Process Behavior • Click-through rates • Abandonment rates • Conversion rates • Net Promoter • Social media • 3rd party data (Nielsen, Gallup, LexisNexis, etc) 48
  9. 9. 4/14/2018 9 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) 49 50 It’s the unknown unknowns and epistemic arrogance that kills 51 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 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. 52Zen and the art of motorcycle maintenance page 93. Mind your hubris 53 54 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
  10. 10. 4/14/2018 10 55 56 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. 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 Do you have the right balance? 60 Quality Value
  11. 11. 4/14/2018 11 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? 61 Impact-Drive Development 62 63 64 Merging Product Discovery and Product Delivery 65 http://productagility.org/ Iterative Discovery and Delivery Model Hypothesis Ideas Build and Validate Iterative Stable Team Delivery Project/Release Planning
  12. 12. 4/14/2018 12 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 • Story telling and test statements create understanding of value and DoD 67 kburns@sagesw.com, @kevinbburns 68 How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ 69 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 Select a measurement method 71 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? 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
  13. 13. 4/14/2018 13 Questions & Next Steps • Do you know what outcomes and impacts you’re trying to achieve? • Do we have the right people? • Do you need help? 73 42 74 Life, the Universe, and Everything

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