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Applying the Lean Startup Model to the Enterprise

There's a recording of this talk from QCon SF 2011 here: http://www.infoq.com/presentations/Innovation-at-Scale-using-Lean-Thinking

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applying the lean startup
                         model to the enterprise
                         December 5 2012, Santa Monica-JUG
                         @jezhumble | jez@thoughtworks.com




                               © 2012 ThoughtWorks, Inc.
Friday, December 7, 12
A startup is a human
    institution designed to create
      new products and services
    under conditions of extreme
              uncertainty




  eric ries, the lean startup, ch. 1
Friday, December 7, 12
innovation
                         You can't just ask
                          customers what
                            they want and
                           then try to give
                             that to them.
                          By the time you
                               get it built,
                              they'll want
                          something new.
    steve jobs

Friday, December 7, 12
the lean startup

                                                        Ideas
                         Create hypothesis
                         Deliver mimimum        Learn             Build

                         viable product
                         Get feedback
                                                Data                Code
                         (repeat, pivoting if
                                                        Measure
                         necessary)

    the lean startup, part II - steer
Friday, December 7, 12
business agility

        “The main obstacles to improved
        business responsiveness are slow
        decision-making, conflicting
        departmental goals and priorities, risk-
        averse cultures and silo-based
        information.”


                                 Economist Intelligence Unit: “Organisational agility:
                                 How business can survive and thrive in turbulent times”

Friday, December 7, 12
enterprise-class problems


       • Political
       • Organizational
       • Project / program management
       • Governance


Friday, December 7, 12
Ad

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Applying the Lean Startup Model to the Enterprise

  • 1. applying the lean startup model to the enterprise December 5 2012, Santa Monica-JUG @jezhumble | jez@thoughtworks.com © 2012 ThoughtWorks, Inc. Friday, December 7, 12
  • 2. A startup is a human institution designed to create new products and services under conditions of extreme uncertainty eric ries, the lean startup, ch. 1 Friday, December 7, 12
  • 3. innovation You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. steve jobs Friday, December 7, 12
  • 4. the lean startup Ideas Create hypothesis Deliver mimimum Learn Build viable product Get feedback Data Code (repeat, pivoting if Measure necessary) the lean startup, part II - steer Friday, December 7, 12
  • 5. business agility “The main obstacles to improved business responsiveness are slow decision-making, conflicting departmental goals and priorities, risk- averse cultures and silo-based information.” Economist Intelligence Unit: “Organisational agility: How business can survive and thrive in turbulent times” Friday, December 7, 12
  • 6. enterprise-class problems • Political • Organizational • Project / program management • Governance Friday, December 7, 12
  • 7. “the enterprise” Ping! Business Engineering Operations Project C Project A DBAs Infrastructure team Service desk Project B Value stream Friday, December 7, 12
  • 8. enterprise politics Business Engineering Operations Let’s create a new Project C product Project A DBAs Infrastructure team Service desk Get off my land! Project B Value stream Friday, December 7, 12
  • 9. enterprise projects Ping! Business Engineering Operations Let’s create a new Project C Project D Project A product DBAs Infrastructure team Service desk Project B Value stream Friday, December 7, 12
  • 10. Ideas -> Measurement Ideas Learn Build Data Code Measure Friday, December 7, 12
  • 11. We’re Oh shit! going agile! Oh shit! Business Engineering Operations Project D Project A DBAs Infrastructure team Service desk Project B Value stream Friday, December 7, 12
  • 12. agile triangle value (releasable product) constraints quality (cost, schedule, scope) (reliable, adaptable product) Jim Highsmith: Agile Project Management Friday, December 7, 12
  • 13. do less Far more than 50% of functionality in software is rarely or never used. These aren’t just marginally valued features; many are no-value features. The Standish Group, reported in the IEEE conference 2002 Friday, December 7, 12
  • 14. quality “if we do not know who the customer is, we do not know what quality is” the lean startup, ch. 6 - test Friday, December 7, 12
  • 15. build quality in “Cease dependence on mass inspection to achieve quality. Improve the process and build quality into the product in the first place” W. Edwards Deming Friday, December 7, 12
  • 16. Our test-driven code follows SOLID Change Shame it principles management doesn’t work Business Engineering Operations Project D Project A DBAs Infrastructure team Service desk Project B Value stream Friday, December 7, 12
  • 17. devops culture automation measurement sharing Friday, December 7, 12
  • 18. hiring a devop http://gun.io/blog/how-to-hire-devops/ Friday, December 7, 12
  • 19. the devops role If you add a “devops” function to your existing dev, testing and ops functions, you just missed the whole point. Friday, December 7, 12
  • 20. Business Engineering Operations Project C Project A DBAs Infrastructure team Service desk Project B Value stream Friday, December 7, 12
  • 21. continuous delivery developers write production-ready code everyone collaborates throughout lifecycle faster feedback loops lower-risk, more reliable releases done means released Friday, December 7, 12
  • 22. but ops still has all that legacy crap no way to rationally decide what to retire deciding what to do is command-and-control who is feeling the pain? Friday, December 7, 12
  • 23. You build it, You run it werner vogels, cto, amazon Friday, December 7, 12
  • 24. Treat these services as if they were products Business Engineering Operations Project C Project A DBAs Infrastructure team Service desk Project B Value stream Friday, December 7, 12
  • 25. think product Products / Services Operations PaaS Ping! Ops management Service desk Value stream Friday, December 7, 12
  • 26. product development inception: define vision, mvp deliver mvp, get feedback keep delivering small increments Friday, December 7, 12
  • 27. what about utilization? Donald Reinertsen, The Principles of Product Development Flow, p60. Friday, December 7, 12
  • 28. therefore... measure cost and value delivered rationally determine what to prioritize self-manage using lean startup methodology architecture group regulates at system level PMO prevents “market failure” Friday, December 7, 12
  • 29. what is “done”? “user stories were not considered complete until they led to validated learning” the lean startup, ch. 7 - measure Friday, December 7, 12
  • 30. hypothesis-driven delivery We believe that [building this feature] [for these people] will achieve [this outcome]. We will know we are successful when we see [this signal from the market]. Jeff Gothelf “Better product definition with Lean UX and Design” http://bit.ly/TylT6A Friday, December 7, 12
  • 31. enterprise governance risk management SOX, ITIL, COBIT segregation of duties change management auditing and compliance Friday, December 7, 12
  • 32. jesse’s rule “don’t fight stupid, make more awesome” Jesse Robbins, Co-founder, Opscode @jesserobbins Friday, December 7, 12
  • 33. questions @jezhumble | jez@thoughtworks.com http://continuousdelivery.com/ ThoughtWorks is hiring! http://jobs.thoughtworks.com/ Australia | Brazil | Canada | China Germany | India | Singapore | South Africa Uganda | UK | USA © 2012 ThoughtWorks, Inc. Sign up for my newsletter http://thoughtworks-studios.com/ Friday, December 7, 12