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Sense & Respond: A Lean Leader's Workshop, Jeff Gothelf, Principal, Gothelf.co + Joshua Seiden, Principal, Fifty2

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This hands-on class focuses on managing teams and their activities. It’s also a great opportunity to connect with, share experiences with, and learn from peers–leaders who are in a similar position as you.
This is the class for you if:
You’re a senior practitioner or team leader who has run at least one lean experiment, and you’re trying to get better at running experiments.
You’re currently working on an agile team, but it feels strangely “waterfall-ish.” You’d like to move to a more continuous and iterative feedback-based process.
You have product discovery activities and product delivery activities, but they’re not as well-integrated as you’d like.
You want to build your capability to lead the change on your team and at your company
You’re managing multiple product teams and want to get better at coordinating their activities.
What you’ll learn:
How to align your teams’ efforts to larger strategy and to the needs of your business
How to frame your teams’ work in a way that encourages exploration and innovation
How to structure your projects around risk and learning with a Decision Meeting practice
How to state and track risk on an easy to maintain Risk Dashboard
How to ensure that risk and learning are considered in every iteration
How to plan, track and run a series of experiments

Published in: Business
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Sense & Respond: A Lean Leader's Workshop, Jeff Gothelf, Principal, Gothelf.co + Joshua Seiden, Principal, Fifty2

  1. 1. HOW TO BUILD & LEAD SUCCESSFUL LEAN PRACTICES IN HIGH GROWTH COMPANIES JEFF GOTHELF SENSE & RESPOND JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO JOSH SEIDEN / @JSEIDEN / JOSHSEIDEN@GMAIL.COM
  2. 2. GOTHELF.CO / @JBOOGIE YOUR FACILITATORS TODAY: jeff@gothelf.co Jeff Gothelf @jboogie joshseiden@gmail.com Josh Seiden @jseiden
  3. 3. GOTHELF.CO / @JBOOGIE OUR AGENDA • Intro to concepts • Introduce the problem space (i.e., context) • Business Problem Statements • Risks & The Risks Dashboard • Experiment Stories • Decision-making meetings • Decision-making exercise • Q&A / Discussion
  4. 4. GOTHELF.CO / @JBOOGIE INTRO TO CONCEPTS
  5. 5. GOTHELF.CO / @JBOOGIE WHY SHOULD WE CHANGE?
  6. 6. GOTHELF.CO / @JBOOGIE YOU’RE IN THE SOFTWARE BUSINESS AT GOLDMAN SACHS THE LARGEST SINGLE DIVISION IN THE FIRM IS NOW TECHNOLOGY, EMPLOYING EIGHT THOUSAND—A FULL 25 PERCENT—OF THE FIRM’S THIRTY-TWO THOUSAND EMPLOYEES. GENERAL ELECTRIC HAS BEGUN A PROGRAM CALLED DIGITAL TWINS THAT INVOLVES CREATING DIGITAL SIMULATIONS OF HARDWARE PRODUCTS. 
 
 A JET ENGINE MIGHT HAVE A “VIRTUAL TWIN” SPECIFIC TO THE ENGINE RUNNING ENTIRELY IN SOFTWARE. THIS ALLOWS GE TO MONITOR REAL-TIME PERFORMANCE OF THAT SPECIFIC ENGINE AND ALSO TO EXPERIMENT WITH NEW ENGINE FEATURES AND SETTINGS IN THE DIGITAL REALM WITHOUT HAVING TO TAKE SAFETY RISKS IN THE REAL WORLD.
  7. 7. GOTHELF.CO / @JBOOGIE 7 "We poured surreal amounts of money into it, yet we all thought it had no value for the customer, which was the biggest irony. Whenever anyone asked why we were doing this, the answer was, ‘Because Jeff wants it.’ No one thought the feature justified the cost to the project. No one. Absolutely no one."
  8. 8. GOTHELF.CO / @JBOOGIE "If you think that's a big failure, we're working on much bigger failures right now…some of them are going to make the Fire Phone look like a tiny little blip. The size of your mistakes needs to grow along with the company. If it doesn't, you're not going to be inventing at scale that can actually move the needle." http://www.businessinsider.com/jeff-bezos-why-fire-phone-was-a-good-thing-2016-5
  9. 9. GOTHELF.CO / @JBOOGIE SOFTWARE IS CONTINUOUS
  10. 10. GOTHELF.CO / @JBOOGIE 11.6Seconds
  11. 11. GOTHELF.CO / @JBOOGIE CONTINUOUS CONVERSATION Ship SenseRespondRespond
  12. 12. GOTHELF.CO / @JBOOGIE W E C A N ’ T M A K E D E C I S I O N S L I K E T H I S A N Y M O R E W E ’ R E S E T T I N G O U R P R O D U C T T E A M S U P T O F A I L
  13. 13. GOTHELF.CO / @JBOOGIE SOFTWARE DEVELOPMENT IS COMPLEX AND UNPREDICTABLE.
  14. 14. GOTHELF.CO / @JBOOGIE AGILE & LEAN ARE ONLY FRAMEWORKS
  15. 15. 15
  16. 16. GOTHELF.CO / @JBOOGIE HOW DO WE LEVERAGE LEAN, AGILE & DESIGN THINKING TO BUILD A CUSTOMER-CENTRIC CULTURE OF CONTINUOUS LEARNING? EMBRACING UNCERTAINTY
  17. 17. GOTHELF.CO / @JBOOGIE FOUNDATION: USER-CENTERED PERSPECTIVE
  18. 18. GOTHELF.CO / @JBOOGIE OUTCOME: A MEASURABLE CHANGE IN CUSTOMER BEHAVIOR
  19. 19. GOTHELF.CO / @JBOOGIE FRAMING WORK WITH OUTCOMES ENCOURAGES EXPLORATION…
  20. 20. GOTHELF.CO / @JBOOGIE …BUT IT COMPLICATES MANAGEMENT
  21. 21. GOTHELF.CO / @JBOOGIE Agility in planning — (projected) You are here! Launch!
  22. 22. GOTHELF.CO / @JBOOGIE@jboogie Agility in planning — (actual) roadmaps
  23. 23. GOTHELF.CO / @JBOOGIE THE TRUTH CURVE Anything you’re doing in here is stupid. i.e., unnecessarily risky
  24. 24. GOTHELF.CO / @JBOOGIE WE MAKE EVIDENCE-BASED DECISIONS
  25. 25. GOTHELF.CO / @JBOOGIE THE CONTINUOUS LEARNING CYCLE • Define a business problem • State your desired outcomes • Declare your assumptions • Hypothesize: write the test first • Run an experiment • Synthesize your findings • Kill / pivot / persevere • Repeat Ideas Build Product Measure Data LearnLearn Start here! This should be as short a cycle as possible
  26. 26. GOTHELF.CO / @JBOOGIE FOUNDATION: BUSINESS PROBLEM STATEMENTS
  27. 27. GOTHELF.CO / @JBOOGIE BUSINESS PROBLEM STATEMENTS Provide a specific challenge for the team to solve Give focus to the team’s effort with guidelines and constraints Limit the scope of the team’s work Provide clear measures of success Do not define a solution Are not gospel Will likely be filled with assumptions that need to be proven
  28. 28. GOTHELF.CO / @JBOOGIE BUSINESS PROBLEM STATEMENTS Made up of 3 elements: 1. The current goals of the product or system 2. The problem the business stakeholder wants addressed (i.e., where the goals aren’t being met) 3. An explicit request for improvement that doesn’t dictate a specific solution
  29. 29. GOTHELF.CO / @JBOOGIE BUSINESS PROBLEM STATEMENTS Template for business problem statements: [Our service/product] was designed to achieve [these goals]. We have observed that the product/service isn’t meeting [these goals] which is causing [this adverse effect/ business issue] to our business. How might we improve [service/product] so that our customers are more successful as determined by [these measurable criteria]?
  30. 30. GOTHELF.CO / @JBOOGIE EXAMPLE OF A BAD BUSINESS PROBLEM STATEMENT Our competitors have all shipped mobile applications in the last 12 months and are advertising them heavily. With the ongoing need to stay competitive we too must develop more mobile products. To achieve this we intend to launch an iOS application by Q4 2017 and ensure all of our marketing sites are mobile-friendly by the beginning of Q1 2018. In addition, we will launch a Facebook mobile ad campaign to ensure our acquisition targets are hit this year.
  31. 31. GOTHELF.CO / @JBOOGIE EXAMPLE OF A GOOD BUSINESS PROBLEM STATEMENT With a tremendous increase in funding for ed-tech startups, we’re concerned by the risk of external disruption by a more nimble competitor. New students both in the US and abroad are entering schools with a mobile-first or mobile-only mindset. Our products are heavy and not mobile-friendly. We believe we should invest in more capable mobile offerings but are not sure exactly where those investments should go. Success is defined as a 15% increase in mobile device usage of our flagship learning mangement system by our student population.
  32. 32. GOTHELF.CO / @JBOOGIE TO-DO RIGHT NOW: FORM TEAMS OF 3 OR 4…
  33. 33. GOTHELF.CO / @JBOOGIE TO-DO RIGHT NOW: SAY HELLO (FOR NO MORE THAN 30 SECONDS) TO EACH OF YOUR NEW TEAM MATES
  34. 34. GOTHELF.CO / @JBOOGIE FOUNDATION: BUSINESS PROBLEM STATEMENTS
  35. 35. GOTHELF.CO / @JBOOGIE EACH TEAM PICK ONE OF THESE PRODUCTS TO WORK ON • Amazon Echo (link) • Voice-based ask-me-anything speaker/cylinder device • Samsung Family Hub Refrigerator (link) • Fridge with a screen, app, and internal camera that sends you pics of interior
  36. 36. GOTHELF.CO / @JBOOGIE EXERCISE: WRITING BUSINESS PROBLEM STATEMENTS Each team, place yourselves in the shoes of the team responsible for creating this product. Write one business problem statement for the product you chose. Assume it does not already exist.
  37. 37. GOTHELF.CO / @JBOOGIE BUSINESS PROBLEM STATEMENTS Template for business problem statements: [Our service/product] was designed to achieve [these goals]. We have observed that the product/service isn’t meeting [these goals] which is causing [this adverse effect/ business issue] to our business. How might we improve [service/product] so that our customers are more successful as determined by [these measurable criteria]?
  38. 38. GOTHELF.CO / @JBOOGIE METHOD: RISKS DASHBOARD
  39. 39. GOTHELF.CO / @JBOOGIE COMMUNICATE RISKS, CONTINUOUSLY We can create a breakeven or better business model need to see strong engagement Practitioners will interact with questions and comments need more data, some concerns We can avoid legal risk for clinician participants good intra-organization, questions for inter-org groups We can sell this directly to alumni groups, private practices, and national orgs untested This concept is interesting to more than residents positive signs People are hungry for more cases than they currently have positive signs but we want to see more demand
  40. 40. GOTHELF.CO / @JBOOGIE EXERCISE: CREATE A RISKS DASHBOARD Each team, identify 5 risks for your business problem statement and create a risks dashboard for them based on the current state of the parent company (Amazon / Samsung).
  41. 41. GOTHELF.CO / @JBOOGIE METHOD: EXPERIMENT STORIES
  42. 42. GOTHELF.CO / @JBOOGIE EXPERIMENT STORIES What do we need to learn?
  43. 43. GOTHELF.CO / @JBOOGIE EXPERIMENT STORIES We believe that asking new users MORE questions during registration will increase completed profiles. Tactic: Landing page test Customer interviews Assigned to: UX, PdM 2pts
  44. 44. GOTHELF.CO / @JBOOGIE EXPERIMENT STORIES
  45. 45. GOTHELF.CO / @JBOOGIE ONCE THE EXPERIMENT IS OVER • Bring your learnings to stand up (or call an impromptu meeting) • Use conversation • Follow up with artifacts -- photos, (short) videos, results/reports • Assess impact to backlog • Re-prioritize if necessary • Re-estimate (or write new stories) depending on the experiment’s outcome • Capture your findings in your team’s knowledge management tool (e.g., wiki) • Communicate your findings to stakeholders and other groups • Get approval (if necessary) for scope changes
  46. 46. GOTHELF.CO / @JBOOGIE METHOD: DECISION-MAKING MEETING
  47. 47. GOTHELF.CO / @JBOOGIE THE DECISION-MAKING MEETING • Happens on a regular cadence • Consistent attendance / empowered team • Goal is to review evidence collected since last meeting • Review risks dashboard and make decisions on whether to kill / pivot / persevere effort on certain experiments and delivery work • The venue for the risks dashboard • Discussion should include impact of each decision and where efforts will shift if decision is to kill or pivot an idea
  48. 48. GOTHELF.CO / @JBOOGIE EXERCISE: DECISION-MAKING MEETING Each team will be presented with some experiment findings. Reconcile these findings with your risks dashboard and make a kill / pivot / persevere decision about your product effort.
  49. 49. GOTHELF.CO / @JBOOGIE EXERCISE: AMAZON EXPERIMENT FINDINGS • Most consumers fear putting a live always-on microphone in their house • The ability to order without a screen is enticing but also scary (what if I order by mistake?) • Amazon is not Google. Most consumers didn’t “search” for anything • Households not heavily dependent on Amazon had far less interest in a voice-based interface than those who use Amazon heavily
  50. 50. GOTHELF.CO / @JBOOGIE EXERCISE: SAMSUNG EXPERIMENT FINDINGS • Families replace a fridge once every 10 years • Smart fridge is still seen as an (old) internet joke • Where will I put my kids’ paintings? • Will I now need an app for my fridge? What about my toaster? • I really care about the environment and reducing waste. How will this help? • Another app store? How free will I be to use/delete these apps?
  51. 51. GOTHELF.CO / @JBOOGIE EXERCISE: DECISION-MAKING MEETING Each team will be presented with some experiment findings. Reconcile these findings with your risks dashboard and make a kill / pivot / persevere decision about your product effort.
  52. 52. GOTHELF.CO / @JBOOGIE Q&A: WHAT ELSE IS ON YOUR MIND?
  53. 53. @JBOOGIE & @JSEIDEN SENSEANDRESPOND.CO THANK YOU! JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO JOSH SEIDEN / @JSEIDEN / JOSHSEIDEN@GMAIL.COM SENSEANDRESPOND.CO WE ARE GIVING AWAY 50 FREE COPIES OF OUR NEW BOOK AT THE REGISTRATION DESK IMMEDIATELY FOLLOWING THIS WORKSHOP

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