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Thoughts on Lean Product Development at CAMUG, YYC Nov 2014

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The rise of the Lean Startup has led to a deeper understanding of the importance of validating business ideas, from new features to new business models. But many tools available to the Product Owner aren't adapted to rapid validation. Starting from the principles and practices of agile product management, from defining the product vision to creating story maps and refining the product backlog, you will learn about key practices that incorporate the lean startup principles, allowing a Product Owner to bring the build-measure-learn cycle alive and ultimately earn more value more quickly.

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Thoughts on Lean Product Development at CAMUG, YYC Nov 2014

  1. 1. Lean Product Management The Value of Experiments ! ! ! @DaveSharrock agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  2. 2. compliance international B2B MBA English IPO agile husband start-up technology newly-minted Canadian executive leanstartup outsourcing father enterprise transitions B2C data analysis kanban seismology PhD scrum organizational excellence Dave Sharrock dave.sharrock@agile42.com twitter: @davesharrock Certified Scrum Coach (CSC) Certified Scrum Trainer™ (CST) agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2014
  3. 3. The Sky is Falling! The Sky is Falling! Applying the Scientific Method to Software Development Incorporating Learning into Product Development A Last Note on Shorter Feedback Loops agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2014
  4. 4. “No matter how good the team or how efficient the methodology, if we’re not solving the right problem, the project fails.” ! Woody Williams agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  5. 5. Assembly Line Manufacturing has a high cost of change http://www.archives.gov.on.ca/english/on-line-exhibits/d-day/big/big_03_airline_assembly.aspx Archives of Ontario, Reference Code: C 190-5-0-0-21 agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  6. 6. Inclusive thinking • In software development, (presumed) high cost of change leads to long delivery cycles • Any and every idea has to be captured in the first version of a requirements specification • This creates waste - bloated documents, unwanted features and entitlement thinking Feature usage in enterprise software Never Rarely Sometimes Often Always Standish Group - CHAOS Report, 1995, 2002 agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  7. 7. Cost of Change Hypothesized Requirements Capture all possible needs Detail of Requirements agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  8. 8. Software Development has commoditized cost of change DevOps Object-oriented languages Ruby on Rails Continuous Delivery jquery Coffeescript Automated Tests agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  9. 9. Cost of Change Hypothesized Requirements Capture all possible needs Detail of Requirements Evolving Requirements Emerging needs as development progresses agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  10. 10. Usability Testing - c.2000 agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  11. 11. Usability Testing - today http://welovelean.wordpress.com/2012/01/29/15-essential-tools-every-lean-startup-cant-li/ agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  12. 12. Changing paradigms • If change is cheap, requirements can change continuously • We can evolve our thinking as we learn more about the product we are building • Maximizing Return-on- Investment requires validating new features early, before the total investment cost has been spent agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  13. 13. Cost of Change Hypothesized Requirements Capture all possible needs Detail of Requirements Validated Requirements Evolving Requirements Lean Startup experiments Emerging needs as development progresses agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  14. 14. The Sky is Falling! The Sky is Falling! Applying the Scientific Method to Software Development Incorporating Learning into Product Development A Last Note on Shorter Feedback Loops agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2014
  15. 15. Designed by KISSmetrics agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  16. 16. Theory Use the theory to make a prediction Prediction The Scientific Method Modify or change your theory Run the prediction experiment Experiment Observe Design an experiment to test the agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  17. 17. The Theory of General Relativity Einstein’s Theory of General Relativity Einstein’s prediction (1907) Light bends in a gravitational field Gradual acceptance of General Relativity over Newtonian Mechanics Observations validated General Relativity Solar Eclipse of 1919 Wait for 1919 solar eclipse to observe whether or not light bends around the sun Arthur Eddington observed that Light did bend around the sun http://thethoughtstash.wordpress.com/2011/01/03/how-eddington-demonstrated-that-einstein-was-right/ agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  18. 18. Applied to an Online Experience User Model Use the model to make a prediction Prediction Modify or change your user model Run the prediction experiment Experiment Validate Design an experiment to test the agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  19. 19. The Sky is Falling! The Sky is Falling! Applying the Scientific Method to Software Development Incorporating Learning into Product Development A Last Note on Shorter Feedback Loops agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2014
  20. 20. Five Levels of Planning Vision Planning Roadmap Planning Release Planning Vision Planning Roadmap Planning ReleaItseera P3loann ning Planning Daily Planning Annually Define a vision Bi-­‐annually Rank features in order of delivery Quarterly Plan stories to be delivered during next release cycle Bi-­‐weekly Sprint planning, focussing on delivery of sprint goal Daily Focus on daily planning of team activities 5 Levels of Agile Planning: From Enterprise Product Vision to Team Stand-up, Hubert Smits (2006) agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  21. 21. Learning Five Levels of Planning Vision Planning Roadmap Planning Release Planning Vision Planning Roadmap Planning ReleaItseera P3loann ning Planning Daily Planning Long-­‐term Define & refine behavioural models we are testing? Pivots happen here. Medium-­‐term Validate understanding with Lean (or Customer Experience) Canvas Regularly Minimum Viable Product. Validate ideas before fully committing investment Bi-­‐weekly Product Owners, Delivery Team Daily Product Owners, Delivery Team 5 Levels of Agile Planning: From Enterprise Product Vision to Team Stand-up, Hubert Smits (2006) agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  22. 22. Known Unknowns Recognize there are gaps in your vision/business model, and look to fill those gaps in as quickly as possible Map of Africa, 1824 http://culturalstudieslectures.blogspot.com/2012/01/ lecture-one-on-question-what-is.html agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  23. 23. “In a nutshell, the job of the product organization is to make that vision a reality. So we don't work for a few weeks or even a few months and then just declare it's not happening and we should do a pivot. We will typically work hard for many months on a product vision and not even entertain the possibility of giving up.” ! Marty Cagan http://www.infoq.com/news/2013/07/pivoting-product-development agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  24. 24. Learning Five Levels of Planning Vision Planning Roadmap Planning Release Planning Vision Planning Roadmap Planning ReleaItseera P3loann ning Planning Daily Planning Long-­‐term Define & refine behavioural models we are testing? Pivots happen here. Medium-­‐term Validate understanding with User Story Mapping and Lean Canvases Regularly Minimum Viable Product. Validate ideas before fully committing investment Bi-­‐weekly Product Owners, Delivery Team Daily Product Owners, Delivery Team 5 Levels of Agile Planning: From Enterprise Product Vision to Team Stand-up, Hubert Smits (2006) agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  25. 25. User Story Mapping is a powerful tool for understanding your product from the perspective of the user agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  26. 26. Validated Learning • Understand the problem a feature will solve • Decide how to ask if your customer cares • Validate before investing complete cost agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  27. 27. 1. Problem top 3 problems !!!! Exis3ng alterna3ves Lean Canvas: Ash Maurya 4. Solu3on top 3 features 8. Key metrics e.g. AARRR 3. Unique value proposi3on Clear compelling message. Why makes you different? 2. Customer segments Target customers !!! Early adopters? 9. Unfair advantage Not easily copied or bought 5. Channels Path to customers 7. Cost Structure Customer acquisi3on, distribu3on, people, etc. 6. Revenue streams Revenue model, life 3me value, revenue, gross margin Product Market Lean Canvas, from Ash Maurya: Running Lean. Licensed under Crea3ve Commons-­‐Aribu3on-­‐Share Alike 3.0 agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  28. 28. <Title / headline> Problem Top 3 problems !!!! Exis3ng / alterna3ve solu3ons Lean Experience Canvas Customer segments ! Early adopters? Success metrics ! Leading and lagging indicators Possible solu3ons ! Key features & benefits for customers & business Business readiness What is needed to deploy and support the solu3on? ! (Staff, budget, training, systems, support, opera3ons dependencies on projects/ vendors) Channels Path to customers Costs People, training, capital, marke3ng, etc. + Objec3ve jus3fica3on Business value 1. User & business value 2. Cost of Delay (urgency) 3. risk reduc3on/opportunity enablement + Objec3ve jus3fica3on Cost of delay linear 1,2,3,5,8,13,21 1,2,3,5,8,13,21 time delay cost Market Product agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  29. 29. Learning Five Levels of Planning Vision Planning Roadmap Planning Release Planning Vision Planning Roadmap Planning ReleaItseera P3loann ning Planning Daily Planning Long-­‐term Define & refine behavioural models we are testing? Pivots happen here. Medium-­‐term Validate understanding with User Story Mapping and Lean Canvases Regularly Minimum Viable Product. Validate ideas before fully committing investment Bi-­‐weekly Product Owners, Delivery Team Daily Product Owners, Delivery Team 5 Levels of Agile Planning: From Enterprise Product Vision to Team Stand-up, Hubert Smits (2006) agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  30. 30. Zappos famously launched without stock, selling shoes from their local specialist show store agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  31. 31. Minimum Viable Product A Minimum Viable Product may be an entire product or a sub-set of product (such as a feature): • Product - The canonical MVP strategy for a web application is to create a mock website for the product and purchase online advertising to direct traffic to the site. The mock website may consist of a marketing landing page with a link for more information or purchase. The link is not connected to a purchasing system, instead clicks are recorded and measure customer interest. • Feature - A link to a new feature in a web application might be shown in a prominent location on the website. The feature is not implemented, rather an apology, mock-up, or marketing page is provided. Clicks of the link are recorded and provide an indication as to the demand for the feature in the customer base. It is ALWAYS smaller than you think! agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  32. 32. How Much Effort on Validation • In 2009, Google ran approximately 12,000 experiments, of which about 10% led to business changes • Linus Pauling famously said, "The best way to have a good idea is to have a lot of ideas." • Focus on minimizing the incremental cost of testing ideas with your customers/users Feature usage in enterprise software Never Rarely Sometimes Often Always Standish Group - CHAOS Report, 1995, 2002 agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  33. 33. One test is worth a thousand expert opinions. ! Wernher Von Braun agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2014
  34. 34. Interaction Model Backlog Validation Execution To Do Observation Doing Doing Deployed For <target group> Who <has a specific need> The <product name> Is A <product category> That <key benefit> Unlike <primary competitors> Our Product <additional advantages> Pathway #1 Pathway #2 •Visualize your User Interaction Model and adjust it as you learn •Come up with ideas for each pathway •Prioritize experimental testing •Spend time on measurement infrastructure (a test without ability to measure = an unvalidated feature) Idea #1.1 Validated? Idea #1.2 Level of Detail / Close to done •Always revisit validation tests for size •The execution board is equivalent to the team’s task board, but at the Idea Card level Idea #1.3 Idea #2.1 Idea #2.2 Idea #2.3 Idea #2.4 Idea #1.4 Idea #1.6 Idea #1.5 http://www.agile42.com/en/blog/2013/06/17/product-owner-board/
  35. 35. The Sky is Falling! The Sky is Falling! Applying the Scientific Method to Software Development Incorporating Learning into Product Development A Last Note on Shorter Feedback Loops agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2014
  36. 36. Economists In November 2007, economists in the Survey of Professional Forecasters — examining some 45,000 economic-data series — foresaw less than a 1- in-500 chance of an economic meltdown as severe as the one that would begin one month later. agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  37. 37. vs Weatherman In 1940, the chance of an American being killed by lightning was about 1 in 400,000. Today, it’s 1 in 11 million. http://www.nytimes.com/2012/09/09/ magazine/the-weatherman-is-not-a-moron. html agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  38. 38. Shifting Paradigms B.G.|A.G. “I know that half of my advertising budget is wasted, but I’m not sure which half” Lord Leverhulme http://www.marketingprofs.com/charts/2009/3161/more-smbs-use-online-media-than-traditional http://marketing.blogs.ie.edu/archives/2011/01/trends-in-online-advertising-in-2011-in-the-united-states.php agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright ©2007-2013
  39. 39. Thank you @davesharrock dave.sharrock@agile42.com Lean Product Management The Value of Experiments ! • Product Management is becoming data-driven • Drive down your incremental cost of validation • Validated requirements trump everything • Feedback without a model means little agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2009.

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