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How do we know we’re delivering value, quality,
and having a beneficial impact?
Presented by Kevin Burns
@
PMI MN
March 19, 2018
1kburns@sagesw.com, @kevinbburns
2
David Hussman
Kevin Burns
Agile/Lean Product Development Coach
Org Change Agent
kburns@sagesw.com, @kevinbburns
History and Experience
3kburns@sagesw.com, @kevinbburns
4kburns@sagesw.com, @kevinbburns
Themes to achieving
Value, Quality and
Beneficial Impact
• Transparency
• Caring
• Continuous Learning
• Measures
5
kburns@sagesw.com, @kevinbburns
Transparency
How transparent are you?
6kburns@sagesw.com, @kevinbburns
7@kevinbburns, kburns@sagesw.com
8
Robert M. Pirsig September 6, 1928 – April 24, 2017
kburns@sagesw.com, @kevinbburns
9
And what is good,
Phaedrus,
And what is not good –
Need we ask anyone to
tell us these things?
kburns@sagesw.com, @kevinbburns
10
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
kburns@sagesw.com, @kevinbburns
Is value determined by delivery on time, on budget, and on scope?
Are they using everything we delivered?
11
Is the scope delighting the customer?
kburns@sagesw.com, @kevinbburns
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?
12kburns@sagesw.com, @kevinbburns
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
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
kburns@sagesw.com, @kevinbburns
How transparent is
your org today?
Transparency leads to…
• Accountability
• Psychological safety
• Creativity
• Innovation
• Opportunity
• Ideas
14
kburns@sagesw.com, @kevinbburns
kburns@sagesw.com, @kevinbburns 15
kburns@sagesw.com, @kevinbburns 16
17
Caring
What do you care about?
kburns@sagesw.com, @kevinbburns
kburns@sagesw.com, @kevinbburns 18
kburns@sagesw.com, @kevinbburns 19
20kburns@sagesw.com, @kevinbburns
21
Are you proud of what you’ve built?
kburns@sagesw.com, @kevinbburns 22
kburns@sagesw.com, @kevinbburns 23
kburns@sagesw.com, @kevinbburns
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?
24kburns@sagesw.com, @kevinbburns
Do you have an environment people thrive in?
kburns@sagesw.com, @kevinbburns 25
26
Continuous Learning
The Search for Truth
kburns@sagesw.com, @kevinbburns
kburns@sagesw.com, @kevinbburns 27
Didactic and binary
challenge
28
• 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
kburns@sagesw.com, @kevinbburns
What do you see?
Seven Habits of Highly Effective People - Stephen Covey
29kburns@sagesw.com, @kevinbburns
kburns@sagesw.com, @kevinbburns 30
Were these cake instructions implemented correctly?
Was the customer delighted?
kburns@sagesw.com, @kevinbburns
Pirsig changed view of Reality to be Quality First
31
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. kburns@sagesw.com, @kevinbburns
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?
32Zen and the art of motorcycle maintenance page 112. kburns@sagesw.com, @kevinbburns
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.
33Zen and the art of motorcycle maintenance page 196. kburns@sagesw.com, @kevinbburns
34
Social economics and unconventional wisdom change the game.
kburns@sagesw.com, @kevinbburns
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.
kburns@sagesw.com, @kevinbburns
Are you purposely
injecting chaos into
your environment
to see how resilient
it is?
36kburns@sagesw.com, @kevinbburns
37
Measures
What’s your single
most important
measure?
kburns@sagesw.com, @kevinbburns
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
kburns@sagesw.com, @kevinbburns
kburns@sagesw.com, @kevinbburns 40
kburns@sagesw.com, @kevinbburns 41
Which measures are
meaningful & why?
42kburns@sagesw.com, @kevinbburns
Strategizing what to measure
KPI’s – Key Performance Indicators
OKR – Objective and Key Results
Market Differentiation Strategy – Value/Quality,
Convenience, Price
kburns@sagesw.com, @kevinbburns
Direct
Customer/Prospect
Feedback Methods
• Interview (in-person/phone)
• Survey/Poll
• Email/Chat
• Focus Groups
• Observation
• Usability Testing
44
kburns@sagesw.com, @kevinbburns
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
kburns@sagesw.com, @kevinbburns
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
46
kburns@sagesw.com, @kevinbburns
47
It’s the unknown unknowns and
epistemic arrogance that kills
kburns@sagesw.com, @kevinbburns
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 - Statisticskburns@sagesw.com, @kevinbburns
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. kburns@sagesw.com, @kevinbburns
Mind your hubris
50kburns@sagesw.com, @kevinbburns
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
kburns@sagesw.com, @kevinbburns
52kburns@sagesw.com, @kevinbburns
53kburns@sagesw.com, @kevinbburns
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.
kburns@sagesw.com, @kevinbburns
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
kburns@sagesw.com, @kevinbburns
Do you have the right balance?
kburns@sagesw.com, @kevinbburns
57
Quality
Value
kburns@sagesw.com, @kevinbburns
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?
58kburns@sagesw.com, @kevinbburns
Impact-Drive Development
59kburns@sagesw.com, @kevinbburns
60kburns@sagesw.com, @kevinbburns
61kburns@sagesw.com, @kevinbburns
Merging Product Discovery and Product Delivery
62
http://productagility.org/
kburns@sagesw.com, @kevinbburns
Iterative Discovery and Delivery Model
Hypothesis
Ideas
Build and Validate
Iterative Stable Team Delivery
Project/Release Planning
kburns@sagesw.com, @kevinbburns
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
64kburns@sagesw.com, @kevinbburns
kburns@sagesw.com, @kevinbburns 65
kburns@sagesw.com, @kevinbburns
How to measure anything – Douglas Hubbard
http://www.howtomeasureanything.com/
66kburns@sagesw.com, @kevinbburns
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 kburns@sagesw.com, @kevinbburns
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?
kburns@sagesw.com, @kevinbburns
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
kburns@sagesw.com, @kevinbburns
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?
70
kburns@sagesw.com, @kevinbburns
42
71
Life, the Universe, and Everything
kburns@sagesw.com, @kevinbburns
?
72kburns@sagesw.com, @kevinbburns

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How do you know you are delivering value pmi mn 3-19-18 with poll results

  • 1. How do we know we’re delivering value, quality, and having a beneficial impact? Presented by Kevin Burns @ PMI MN March 19, 2018 1kburns@sagesw.com, @kevinbburns
  • 2. 2 David Hussman Kevin Burns Agile/Lean Product Development Coach Org Change Agent kburns@sagesw.com, @kevinbburns
  • 5. Themes to achieving Value, Quality and Beneficial Impact • Transparency • Caring • Continuous Learning • Measures 5 kburns@sagesw.com, @kevinbburns
  • 6. Transparency How transparent are you? 6kburns@sagesw.com, @kevinbburns
  • 8. 8 Robert M. Pirsig September 6, 1928 – April 24, 2017 kburns@sagesw.com, @kevinbburns
  • 9. 9 And what is good, Phaedrus, And what is not good – Need we ask anyone to tell us these things? kburns@sagesw.com, @kevinbburns
  • 10. 10 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 kburns@sagesw.com, @kevinbburns
  • 11. Is value determined by delivery on time, on budget, and on scope? Are they using everything we delivered? 11 Is the scope delighting the customer? kburns@sagesw.com, @kevinbburns
  • 12. 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? 12kburns@sagesw.com, @kevinbburns
  • 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 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 kburns@sagesw.com, @kevinbburns
  • 14. How transparent is your org today? Transparency leads to… • Accountability • Psychological safety • Creativity • Innovation • Opportunity • Ideas 14 kburns@sagesw.com, @kevinbburns
  • 17. 17 Caring What do you care about? kburns@sagesw.com, @kevinbburns
  • 21. 21 Are you proud of what you’ve built?
  • 24. 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? 24kburns@sagesw.com, @kevinbburns
  • 25. Do you have an environment people thrive in? kburns@sagesw.com, @kevinbburns 25
  • 26. 26 Continuous Learning The Search for Truth kburns@sagesw.com, @kevinbburns
  • 28. Didactic and binary challenge 28 • 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 kburns@sagesw.com, @kevinbburns
  • 29. What do you see? Seven Habits of Highly Effective People - Stephen Covey 29kburns@sagesw.com, @kevinbburns
  • 30. kburns@sagesw.com, @kevinbburns 30 Were these cake instructions implemented correctly? Was the customer delighted? kburns@sagesw.com, @kevinbburns
  • 31. Pirsig changed view of Reality to be Quality First 31 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. kburns@sagesw.com, @kevinbburns
  • 32. 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? 32Zen and the art of motorcycle maintenance page 112. kburns@sagesw.com, @kevinbburns
  • 33. 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. 33Zen and the art of motorcycle maintenance page 196. kburns@sagesw.com, @kevinbburns
  • 34. 34 Social economics and unconventional wisdom change the game. kburns@sagesw.com, @kevinbburns
  • 35. 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. kburns@sagesw.com, @kevinbburns
  • 36. Are you purposely injecting chaos into your environment to see how resilient it is? 36kburns@sagesw.com, @kevinbburns
  • 37. 37 Measures What’s your single most important measure? kburns@sagesw.com, @kevinbburns
  • 39. 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
  • 42. Which measures are meaningful & why? 42kburns@sagesw.com, @kevinbburns
  • 43. Strategizing what to measure KPI’s – Key Performance Indicators OKR – Objective and Key Results Market Differentiation Strategy – Value/Quality, Convenience, Price kburns@sagesw.com, @kevinbburns
  • 44. Direct Customer/Prospect Feedback Methods • Interview (in-person/phone) • Survey/Poll • Email/Chat • Focus Groups • Observation • Usability Testing 44 kburns@sagesw.com, @kevinbburns
  • 45. 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 kburns@sagesw.com, @kevinbburns
  • 46. 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 46 kburns@sagesw.com, @kevinbburns
  • 47. 47 It’s the unknown unknowns and epistemic arrogance that kills kburns@sagesw.com, @kevinbburns
  • 48. 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 - Statisticskburns@sagesw.com, @kevinbburns
  • 49. 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. kburns@sagesw.com, @kevinbburns
  • 51. 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 kburns@sagesw.com, @kevinbburns
  • 54. 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. kburns@sagesw.com, @kevinbburns
  • 55. 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 kburns@sagesw.com, @kevinbburns
  • 56. Do you have the right balance? kburns@sagesw.com, @kevinbburns
  • 58. 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? 58kburns@sagesw.com, @kevinbburns
  • 62. Merging Product Discovery and Product Delivery 62 http://productagility.org/ kburns@sagesw.com, @kevinbburns
  • 63. Iterative Discovery and Delivery Model Hypothesis Ideas Build and Validate Iterative Stable Team Delivery Project/Release Planning kburns@sagesw.com, @kevinbburns
  • 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 64kburns@sagesw.com, @kevinbburns
  • 66. How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ 66kburns@sagesw.com, @kevinbburns
  • 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 kburns@sagesw.com, @kevinbburns
  • 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? kburns@sagesw.com, @kevinbburns
  • 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 kburns@sagesw.com, @kevinbburns
  • 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 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? 70 kburns@sagesw.com, @kevinbburns
  • 71. 42 71 Life, the Universe, and Everything kburns@sagesw.com, @kevinbburns