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How do you know you are delivering value pmi mn 3-19-18 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. Building off of the Agile Day conference topic of AntiFrAgile, we're part of an anti-fragile organization if we’re measuring the right stuff. Are we measuring the right stuff? How do you know? I’ll share some philosophy 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 pmi mn 3-19-18 with poll results

  1. 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. 2 David Hussman Kevin Burns Agile/Lean Product Development Coach Org Change Agent kburns@sagesw.com, @kevinbburns
  3. 3. History and Experience 3kburns@sagesw.com, @kevinbburns
  4. 4. 4kburns@sagesw.com, @kevinbburns
  5. 5. Themes to achieving Value, Quality and Beneficial Impact • Transparency • Caring • Continuous Learning • Measures 5 kburns@sagesw.com, @kevinbburns
  6. 6. Transparency How transparent are you? 6kburns@sagesw.com, @kevinbburns
  7. 7. 7@kevinbburns, kburns@sagesw.com
  8. 8. 8 Robert M. Pirsig September 6, 1928 – April 24, 2017 kburns@sagesw.com, @kevinbburns
  9. 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. 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. 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. 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. 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. 14. How transparent is your org today? Transparency leads to… • Accountability • Psychological safety • Creativity • Innovation • Opportunity • Ideas 14 kburns@sagesw.com, @kevinbburns
  15. 15. kburns@sagesw.com, @kevinbburns 15
  16. 16. kburns@sagesw.com, @kevinbburns 16
  17. 17. 17 Caring What do you care about? kburns@sagesw.com, @kevinbburns
  18. 18. kburns@sagesw.com, @kevinbburns 18
  19. 19. kburns@sagesw.com, @kevinbburns 19
  20. 20. 20kburns@sagesw.com, @kevinbburns
  21. 21. 21 Are you proud of what you’ve built?
  22. 22. kburns@sagesw.com, @kevinbburns 22
  23. 23. kburns@sagesw.com, @kevinbburns 23 kburns@sagesw.com, @kevinbburns
  24. 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. 25. Do you have an environment people thrive in? kburns@sagesw.com, @kevinbburns 25
  26. 26. 26 Continuous Learning The Search for Truth kburns@sagesw.com, @kevinbburns
  27. 27. kburns@sagesw.com, @kevinbburns 27
  28. 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. 29. What do you see? Seven Habits of Highly Effective People - Stephen Covey 29kburns@sagesw.com, @kevinbburns
  30. 30. kburns@sagesw.com, @kevinbburns 30 Were these cake instructions implemented correctly? Was the customer delighted? kburns@sagesw.com, @kevinbburns
  31. 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. 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. 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. 34 Social economics and unconventional wisdom change the game. kburns@sagesw.com, @kevinbburns
  35. 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. 36. Are you purposely injecting chaos into your environment to see how resilient it is? 36kburns@sagesw.com, @kevinbburns
  37. 37. 37 Measures What’s your single most important measure? kburns@sagesw.com, @kevinbburns
  38. 38. kburns@sagesw.com, @kevinbburns 38
  39. 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
  40. 40. kburns@sagesw.com, @kevinbburns 40
  41. 41. kburns@sagesw.com, @kevinbburns 41
  42. 42. Which measures are meaningful & why? 42kburns@sagesw.com, @kevinbburns
  43. 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. 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. 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. 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. 47 It’s the unknown unknowns and epistemic arrogance that kills kburns@sagesw.com, @kevinbburns
  48. 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. 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
  50. 50. Mind your hubris 50kburns@sagesw.com, @kevinbburns
  51. 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
  52. 52. 52kburns@sagesw.com, @kevinbburns
  53. 53. 53kburns@sagesw.com, @kevinbburns
  54. 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. 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. 56. Do you have the right balance? kburns@sagesw.com, @kevinbburns
  57. 57. 57 Quality Value kburns@sagesw.com, @kevinbburns
  58. 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
  59. 59. Impact-Drive Development 59kburns@sagesw.com, @kevinbburns
  60. 60. 60kburns@sagesw.com, @kevinbburns
  61. 61. 61kburns@sagesw.com, @kevinbburns
  62. 62. Merging Product Discovery and Product Delivery 62 http://productagility.org/ kburns@sagesw.com, @kevinbburns
  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 64kburns@sagesw.com, @kevinbburns
  65. 65. kburns@sagesw.com, @kevinbburns 65 kburns@sagesw.com, @kevinbburns
  66. 66. How to measure anything – Douglas Hubbard http://www.howtomeasureanything.com/ 66kburns@sagesw.com, @kevinbburns
  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 kburns@sagesw.com, @kevinbburns
  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? kburns@sagesw.com, @kevinbburns
  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 kburns@sagesw.com, @kevinbburns
  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 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. 71. 42 71 Life, the Universe, and Everything kburns@sagesw.com, @kevinbburns
  72. 72. ? 72kburns@sagesw.com, @kevinbburns

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