Lean Startup for Project Managers

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Presentation for Sydney Project Managers' Meetup. Compare and contrast between Lean Startup and tradiitonal project management in a product development context.

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Lean Startup for Project Managers

  1. 1. Lean Startup For Project Managers Project Managers Meetup Dec 2012 By Caroline Gordon @carolineggordon carolineggordon.comThursday, 7 March 13
  2. 2. Me Engineer -> Manager Project Manager / Development Manager 15+ yrs Product CompaniesThursday, 7 March 13
  3. 3. Some of the different stuff I helped createThursday, 7 March 13
  4. 4. Thursday, 7 March 13
  5. 5. Lean Startup On the surface A risk management technique Context: Very high uncertaintyThursday, 7 March 13
  6. 6. Thursday, 7 March 13
  7. 7. Lean Startup In its essence A totally new way to manage, track, and deliver A Mindshift...Thursday, 7 March 13
  8. 8. Inputs “Traditional Project Management” PMBOK - The Project Management Institute (PMI) Project Management Body of Knowledge. A flexible guide to managing projects. Basis of PMP Certification. Lean Startup - Book by Eric Reis, subject of many blogs, workshops (Lean Startup Machine), conferences MeThursday, 7 March 13
  9. 9. What is a startup? A startup is a human institution designed to create a new product or service under conditions of extreme uncertaintyThursday, 7 March 13
  10. 10. What is a startup? A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty What is a project? A project is a temporary endeavor undertaken to create a unique product, service, or result.Thursday, 7 March 13
  11. 11. Thursday, 7 March 13
  12. 12. Staffing level for a lean startupThursday, 7 March 13
  13. 13. Lean Startup 4 questions: 1.Do customers have the problem? 2.If there was a solution would they buy it? 3.Would they buy it from us? 4.Can we build a solution for that problem? Traditional Project Product Manager - “I want this” Development Team - Build It (straight to step 4)Thursday, 7 March 13
  14. 14. Lean Startup 4 questions: 1.Do customers have the problem? 2.If there was a solution would they buy it? 3.Would they buy it from us? 4.Can we build a solution for that problem? Traditional Project Product Manager - “I want this” Development Team - Build It (straight to step 4)Thursday, 7 March 13
  15. 15. Traditional Project Management Product Manager Project Team Study the problem and conceive the solution Working on other projects Build business model Build an estimate- incl Write Marketing analyse build risks and add Requirements Document activities Get project Approved - customer problem, high level solution and business model do not change after here Engage with the team to refine Iteratively build the solution functionality Deliver the product -cycle time - months, yearsThursday, 7 March 13
  16. 16. Lean Startup Product Manager Project Team Study the problem and conceive the solution Test the assumptions in the model with customers Build business model Build - measure - learn cycle time - hours, days, weeksThursday, 7 March 13
  17. 17. Vision: Overarching goal Strategy: Business model, customer proposition Product: Solution to customer problemThursday, 7 March 13
  18. 18. Projects - this part is fixed after planning and initiation phases Vision: Overarching goal Strategy: Business model, customer proposition Product: Solution to customer problemThursday, 7 March 13
  19. 19. Build-Measure-Learn LoopThursday, 7 March 13
  20. 20. Startup: Series of experiments looking for invalidation of assumptions. Invalidation - > Pivot Change business model, customer proposition Project: Success is defined by how close you meet project objectives. If any invalidation comes to light: cancel the projectThursday, 7 March 13
  21. 21. Risk Based Project Management: ✓risk analysis of building the product ✓add activities to reduce risk ✓sequence activities according to level of risk, focus on biggest risks early ✓reduce risk early Lean Startup ✓risk analysis expands to the business model and customer ✓add activities to scientifically prove your assumptions (remove the risks) ✓start with the biggest risk - will be around the business model / customer ✓reduce risk earlyThursday, 7 March 13
  22. 22. Risk Based Project Management: ✓risk analysis of building the product ✓add activities to reduce risk ✓sequence activities according to level of risk, focus on biggest risks early ✓reduce risk early Lean Startup ✓risk analysis expands to the business model and customer ✓add activities to scientifically prove your assumptions (remove the risks) ✓start with the biggest risk - will be around the business model / customer ✓reduce risk earlyThursday, 7 March 13
  23. 23. Initial Activities to reduce risk: Project Management ✓build a prototype ✓engage stakeholders ✓understand requirements Lean Startup ✓validate your assumptions that the problem exists ✓validate your assumption that your solution will solve the problem ✓look for better solutionsThursday, 7 March 13
  24. 24. Initial Activities to reduce risk: Project Management ✓build a prototype ✓engage stakeholders ✓understand requirements Lean Startup ✓validate your assumptions that the problem exists ✓validate your assumption that your solution will solve the problem ✓look for better solutionsThursday, 7 March 13
  25. 25. Intuit Example - Intuit. 20 year old company around 2002, it’s new products had a poor success record. TurboTax had one major release per year.Thursday, 7 March 13
  26. 26. Intuit Fast forward to lean startup they had over 500 changes in 2.5 month tax season, each one built, deployed, tested and learning gathered in 1 week - 70 tests per week. Key metrics for the enterprise - number of customers using products that didn’t exist 3 years ago andThursday, 7 March 13
  27. 27. Intuit Last 5 years average annual revenue increase of 10%Thursday, 7 March 13
  28. 28. Mind Shifts When you have only 1 test - the ‘project’ you have to sell all through the project - you are always ‘selling’ the idea Out of 100 good ideas you’ve got to sell your idea (the project). So you build up an organisation of politicians and sales people When you have 500 tests you are running, then everybody’s ideas can run and then you create entrepreneurs who can learn and adapt instead of politiciansThursday, 7 March 13
  29. 29. Mind Shifts... Leaders and middle managers (project managers!) think that they are analysts and their job is to do great analysis and create the right plan The leaders (project manager’s) job now is to get their idea in the hands of customers as soon as possible and let them vote on what works Intuit - CookThursday, 7 March 13
  30. 30. “It’s moving leaders from playing Caesar with their thumbs up or down on every idea to - instead putting in the culture and systems so that teams can move and innovate at the speed of the experimentation system” Intuit Founder - Scott CookThursday, 7 March 13
  31. 31. More mind shifts! Innovation is a bottom up decentralised and unpredictable thing but that doesn’t mean it can’t be managed - it can but it requires a whole new discipline Established companies have less time than ever to dominate with a successful product - they have to create Innovation Factories following Lean Startup principles to create disruptive innovations continuously - The challenge - do it on an Enterprise Scale with managers schooled in traditional managementThursday, 7 March 13
  32. 32. How to validate quickly - example - Lean Startup Machine Weekend 1 weekend to validate a business idea: ✓customer hypothesis - who are they? ✓problem hypothesis - what is their problem? ✓assumptions - what am I assuming? ✓riskiest assumption - test How to test: “get out of the building” ✓Customer interviews ✓Online surveys ✓Online sign up page ✓Decide your target metric before you start -> 8/10 people must agree that.. ✓Not selling ... seeking to understand Validated or not (metric based) -> pivot or persevere ✓Next riskiest assumption...testThursday, 7 March 13
  33. 33. Compared to Traditional project approach: market research, customer interviews, develop customer proposition business model hand to development team iterate solution -> NOT iterating business model or customer value propositionThursday, 7 March 13
  34. 34. Innovation Accounting - a new management paradigm 3 steps: 1.Baseline: Use MVP (minimum viable product) to establish real data on where you are now 2.Tuning the engine: changes that must improve basic metric (eg sign up rate) 3.Learn: Pivot or persevereThursday, 7 March 13
  35. 35. Thursday, 7 March 13
  36. 36. Customer ProblemThursday, 7 March 13
  37. 37. Customer Problem Assumption Assumption Assumption Riskiest Assumption Assumption Assumption AssumptionThursday, 7 March 13
  38. 38. Customer Problem Riskiest Assumption Assumption Assumption Assumption Assumption Assumption AssumptionThursday, 7 March 13
  39. 39. Customer Problem Riskiest Assumption Assumption Assumption Assumption Assumption Method Assumption AssumptionThursday, 7 March 13
  40. 40. Customer Problem Riskiest Assumption Assumption Assumption Assumption Assumption Method Minimum Assumption Assumption SuccessThursday, 7 March 13
  41. 41. Customer Problem Riskiest Assumption Assumption Assumption Assumption Assumption Method Minimum Assumption Assumption SuccessThursday, 7 March 13
  42. 42. Customer Problem Riskiest AssumptionThursday, 7 March 13
  43. 43. Different Customer Customer Same Problem Problem Riskiest AssumptionThursday, 7 March 13
  44. 44. Validation boards Lean Startup Machine – invite only for online, but you can download a nice version and use it locally. Follows the Lean Startup Machine model of assumption vaildation. Lean Canvas - follows lean startup principles, supports multiple boards for each segment of your idea and click through for experiments and results – very nice Lean Launch Lab – includes some nice features like recording customer interviewsThursday, 7 March 13
  45. 45. More books - Escape Velocity - Geoffrey Moore, Inspired - Marty CaganThursday, 7 March 13
  46. 46. Tomorrow at work: - Question the assumptions! - Manage all the risks - Look deeper...Thursday, 7 March 13
  47. 47. Tell me how you went... @carolineggordon carolineggordon.com caroline@carolineggordon.comThursday, 7 March 13

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