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Driving Lean Innovation on Agile Teams

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The Lean Startup© methodology has taken the business world by storm, and is revolutionizing product development through the application of a Build-Measure-Learn cycle, and the systematic application of techniques such as Customer Discovery, Customer Development, and Pirate Metrics.

With agile teams in place, how can organizations now drive lean product innovation on their agile teams? How can we bootstrap product development with product roadmaps and business requirements that are truly aligned with end-user needs?

Learn how to drive Lean Innovation on your agile teams by:

_ Setting up clear, short-term experiments using the popular Lean Canvas tool;
_ Structuring direct customer interaction through systematic customer interviews;
_ Release planning informed by both qualitative & quantitative feedback through the design of actionable metrics;
_ Generating user stories and acceptance criteria directly evolved from the above data;
_ Creating a _dual-track_ of no- and low-cost UX prototyping in conjunction with agile delivery to reduce the cost of iteration while validating ideas and features; and
_ Designing collaborative workspaces that enable tight collaboration and higher productivity through visual management, creative lighting, lounge space and other proven techniques.

The Lean Startup© is a registered trademark of Eric Ries.

Published in: Technology, Business

Driving Lean Innovation on Agile Teams

  1. 1. Driving Lean Innovation on Agile Teams Presented by Sanjiv Augustine Sanjiv.Augustine@LitheSpeed.com @saugustine, @lithespeed
  2. 2. About Me Sanjiv Augustine •  •  •  •  President of LitheSpeed, LLC Experience: 25 years industry, 13 years of Agile, 10 years of Lean Specialties: Agile, Lean, Innovation Practitioner, entrepreneur, consultant, trainer, author, speaker and community organizer
  3. 3. Keys to Lean Innovation on Agile Teams 1.  Small, agile teams with the right people are crucial to innovation 2.  When combined with Agile, Lean Startup & Design Thinking are especially beneficial for consumer-facing companies 3.  Scaling requires leadership to create incubation environments where ideas can collide, combine and evolve 4.  A disciplined Lean + Agile process that facilitates Customer Development along with Agile Delivery can drive world-class innovation
  4. 4. Agenda 1.  Sensei Story 2.  Agile Blues, Lean Startup 3.  Lean + Agile Innovation •  Customer Discovery + Validation •  Dual Track Development •  Notes for the Enterprise “Life’s too short to build something nobody wants.” - Ash Maurya, Lean Entrpreneur, Author of Running Lean
  5. 5. Our Sensei Story http://www.senseitool.com
  6. 6. First, an Idea! A tool to facilitate Continuous Improvement via the Scrum Retrospective Sensei is an Agile retrospective tool by LitheSpeed.
  7. 7. Quickly built a prototype 7
  8. 8. And, we took it on the road 8
  9. 9. Everyone said this was the best thing since…
  10. 10. And so… Lost a Team, Got a New Team We built, built, built And built some more
  11. 11. Build and they will come? Customer Discovery Feature Development
  12. 12. Now What? •  Solution crafted, few customers •  No ideas on how best to proceed •  Keep building? •  But… We’re almost out of runway!
  13. 13. Agile Blues, Lean Startup
  14. 14. Limitations of Agile •  Backlog items are not validated per true end-user needs •  Critical reliance on the Product Owner •  The Product Owner is not infallible •  IT bias…fall back on what we know: build, build, build
  15. 15. A Serendipitous Epiphany through Lean Startup •  •  •  •  Steve Blank coined “customer development” in the book “Four Steps to the Epiphany” Steve funded Eric Ries’s startup company IMVU in 2004 In 2010, Alex Osterwalder wrote “Business Model Generation” In 2011, Eric wrote “The Lean Startup”
  16. 16. The Lean Startup Cycle: Build-Measure-Learn •  Know your customer •  Start small •  Fail fast, learn fast •  Test relentlessly •  Seek customer validation at all levels
  17. 17. Lean + Agile Innovation •  •  •  Customer Discovery + Validation Dual Track Development Notes for the Enterprise
  18. 18. Lean + Agile Innovation Process Find the right product market fit… Customer   Discovery   Customer   Valida3on   Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE Dual Track Development Lean validation and design in parallel with Agile delivery
  19. 19. Customer Discovery + Validation
  20. 20. Most Initial Business Models are Wrong •  PDA encryption software led to… •  The Game NeverEnding (a web-based MMORPG) led to…
  21. 21. Test the Big Risks Cheaply… Zappos hypothesized that people will buy shoes online. How did they test this assumption? 21 21
  22. 22. Two Central Lean Startup Concepts The Minimum Viable Product (MVP) A “Minimum Viable Product” might be: •  Learning: Onsite observation, fake menus, ads •  Pitching: Preorders, comparisons, joint design •  Experiencing: Concierge, prototypes Later releases focus on scaling Early releases focus on quickly & cheaply testing ideas The Pivot Based on what you learn, you might: •  Target another customer group •  Target a different need •  Expand or contract feature focus •  Change platforms or architecture •  Change channels
  23. 23. Lean Canvas to draft Business Model, drive experiments Thanks to Ash Maurya, LeanCanvas.com
  24. 24. Example Lean Canvas for Sensei Sensei is an Agile retrospective tool by LitheSpeed. See www.senseitool.com
  25. 25. Overcoming the fear of being “salesy”
  26. 26. Watching users in action
  27. 27. Quantitative A/B & Multivariate Testing Split (A/B) testing randomly presents users with competing versions of specific application pages and features. •  •  See what works best by running parallel experiments Choose the winning option after appropriate time Header Sign up form Demo movie Story 58% of visitors signed up A B Header Story Demo movie Sign up form 35% of visitors signed up
  28. 28. A/B Testing Adding the term “distributed teams” to the Value Proposition resulted in a 60% increase in registrations 28
  29. 29. Engaging the customer | Live Chat 29
  30. 30. The Pivot, Lessons Learned •  •  •  •  •  •  Focus on distributed teams Simplified workflow Power versus casual users Face-to-face customer feedback Will you buy it? Customer validation is crucial to product market fit Agile delivery with a trusted team is a must! 30
  31. 31. Lean + Agile Innovation Process Find the right product market fit… Customer   Discovery   Customer   Valida3on   Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE Dual Track Development Lean Validation and Design in parallel with Agile delivery
  32. 32. Dual-Track Development
  33. 33. We Learn Fast and Iterate Iterating allows you to move from vague idea to validation, realization and ongoing enhancement. 1 2 3 4 5
  34. 34. Parallel Collaborative Design & the Design Studio Describe Key Goals & Context Select Designs to Iterate Steal Ideas & Try Again 2-3 cycles Sketch Designs Independent ly Share Designs Design Studio Approach Benefits: •  Rapid idea generation & iteration •  Avoid missed opportunities •  Buy-in across team(s)
  35. 35. Sensei – Product Backlog
  36. 36. Sensei – Dual Track Development STREAM OF VALIDATED FEATURES LEAN FEATURE VALIDATION AND ELABORATION AGILE FEATURE DELIVERY AND RELEASE INVALIDATED 36
  37. 37. “Pirates” can be quite instructive… “PIRATE” METRICS
  38. 38. Lean + Agile Innovation Process Find the right product market fit… Customer   Discovery   Customer   Valida3on   Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE Dual Track Development Lean Validation and Design in parallel with Agile delivery
  39. 39. Notes for the Enterprise
  40. 40. How do we scale Lean Innovation to the Enterprise? What are the “spaces” that drive creativity and innovation? 1.  Slow hunches take time to incubate and evolve 2.  Good ideas come from the collision between smaller hunches 3.  Increases in connectivity correspond to increases in innovation 4.  We need to create systems and spaces that allow ideas to collide, combine and evolve “Chance favors the connected mind.” - Steven Johnson, Author of Where Good Ideas Come From
  41. 41. Lean for the Enterprise @ Capital One* 1.  Hire only the best digital talent and then massively empower them 2.  Designed new workplace environments to spark innovation 3.  Retooled consumer insights generation 4.  Don’t create business cases first – Build and test prototypes to create the business case 5.  Build concierge-based solutions before we build the technology 6.  Measure success as customer engagement rather than unit production *Gagan Kanjlia, Senior Vice President, Capital One Bank
  42. 42. Keys to Lean Innovation on Agile Teams 1.  Small, agile teams with the right people are crucial to innovation 2.  When combined with Agile, Lean Startup & Design Thinking are especially beneficial for consumer-facing companies 3.  Scaling requires leadership to create incubation environments where ideas can collide, combine and evolve 4.  A disciplined Lean + Agile process that facilitates Customer Development along with Agile Delivery can drive world-class innovation
  43. 43. Contact Us for Further Information Sanjiv Augustine President Sanjiv.Augustine@LitheSpeed.com Twitter: @saugustine, @lithespeed Arlen Bankston Executive Vice President Arlen.Bankston@LitheSpeed.com On the Web: http://www.lithespeed.com http://www.senseitool.com "I only wish I had read this book when I started my career in software product management, or even better yet, when I was given my first project to manage. In addition to providing an excellent handbook for managing with agile software development methodologies, Managing Agile Projects offers a guide to more effective project management in many business settings." John P. Barnes, former Vice President of Product Management at Emergis, Inc.

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