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LKCE19 - Sven Günther & Henning Wolf - DYNAMIC - How to get Fit for Purpose

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The Fit for Purpose Framework already gained momentum describing the criteria to develop the products and services that customers want and are willing to pay for. But how to start implementing the framework at your company? DYNAMIC is derived from STATIK and will provide the steps you can use to implement the F4P framework on your own.

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LKCE19 - Sven Günther & Henning Wolf - DYNAMIC - How to get Fit for Purpose

  1. 1. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 DYNAMIC How to get Fit for Purpose
  2. 2. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 THE FIT FOR PURPOSE FRAMEWORK Fit for Purpose - developed by David J. Anderson and Alexej Zheglov - a means to find, satisfy and keep customers
  3. 3. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019
  4. 4. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 PRODUCT / SERVICE - 3 COMPONENTS SERVICE DELIVERY How does the product or service get to the customer? How do we want to deliver it? DESIGN What is the product or service meant to be? How should the product fulfill the needs the customer has? IMPLEMENTATION How is the product or service implemented? What level of sophistication do we achieve? What level of quality do we deliver?
  5. 5. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 FITNESS CRITERIA -How does the product conform to certain standards or regulatory compliances -How fast will it be delievered -How predictable is the delivery -What about timeliness -functional quality: What? -non funtional quality: How well? TIME TO MARKET QUALITY SAFETY & CONFORMANCE COMMON FITNESS CRITERIA
  6. 6. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 SEGMENT BY PURPOSE Segment by customer purpose: - Personal education - Business context - Family context USUALLY BY DEMOGRAPHICS - Age - Gender - Social status MARKET SEGMENTATION SEGMENT BY CUSTOMER PURPOSE
  7. 7. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 SURVEYS & DATA - Fit for Purpose Cards - Fitness Box Score HUMANS & NARRATIVE - Getting in contact with customers KNOW THE CUSTOMERS PURPOSE ASKING THE CUSTOMER
  8. 8. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 METRICS (I) FITNESS CRITERIA - Customers select by fitness criteria - Have a threshold - Below threshold the product is unfit and the customer selects a different product - This should be your KPI HEALTH INDICATOR - Indicates the health of the business - Have a range - Data out of this range indicate decreasing some other metrics and might be harmful
  9. 9. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 METRICS (II) IMPROVEMENT DRIVERS - Tell you which part of the value stream you should improve - Have indirect impact on business success VANITY METRICS - This metric let you feel good but has no business impact - Often a cultural aspect - You should aim to remove this metric
  10. 10. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 D Y N A M I C etect our ext ctions (for) aking mproving hanges
  11. 11. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 IDENTIFY PRODUCT(S) Identify at least 1 product or service you want to improve 01 DESCRIBE Describe its design, implementation and service delivery at least roughly 02 FIND F4P- CRITERIA Find 2 to 5 fitness criteria your customers might have 03 8 STEPS TO DYNAMIC SEGMENTS Decide on the market segments you want to serve 04 STATUS QUO Use narratives and F4P- surveys to check status quo and customer purposes 05 IMPROVEMENT Decide on improvement: Where do you want to improve? What are you going to change/try? 06 DO AND REFLECT Do something and decide on your feedback cycle / time to reflect 07 REPEAT Depending on your feedback, go back to step 7, 6, 5, 4, 3, 2 or 1 08
  12. 12. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 DYNAMIC FEEDBACK LOOPS 01 03 02 05 04 07 06 08 IDENTIFY PRODUCT(S)01 DESCRIBE 02 FIND F4P- CRITERIA03 SEGMENTS 04 STATUS QUO 05 IMPROVEMENT 06 DO AND REFLECT07 REPEAT 08
  13. 13. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 02 CRITERIA TO DECIDE Example: We want to start with a popular product with data available. 03 ONE PRODUCT Example: Kanban Management Professional 1 workshops 01 LIST OF PRODUCTS Example: Kanban Coaching, KMP1, KMP2, TKP, KMM, LKCE There might be different ways to do this step, you might start with a list of your products and services. You might want to decide on how to find the next product to improve. There can be a lot of different criteria like todays’s cash cow, tomorrow’s cash cow, the product with most complaints, the product with most data available, the oldest/newest product. Using your list and criteria you or a group of relevant people in your organization choose one product. STEP 1: IDENTIFY PRODUCT(S)
  14. 14. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 DESIGN classroom in-person style, accredited with Kanban University, Introduction, Curriculum to get people to start working with Kanban, 2 day class 01 IMPLEMENTATION training style „training from the back of the room“, mainly flip charts only some slides, many exercises 02 SERVICE DELIVERY Own venue in our offices, registration website, usually one trainer (AKT) 03 Describe at least something about Design Implementation Service Delivery of your product! STEP 2: DESCRIBE EXAMPLE: KMP 1 CLASS AT IT-AGILE
  15. 15. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 GUESS OR ASK You can start with a guess or you can start with asking your customers WHAT DO WE EXPECT? What do we want to achieve with this product? EXAMPLE KMP1 Understanding Kanban, Accreditation, Knowing how to Start with Kanban, Improving systems using Kanban COMBINING GUESS/ASK Sometimes it might be a good idea to combine guessing and asking: Ask for your anticipated reasons and let space for additional criteria. THRESHOLD What are the thresholds for satisfaction and over-serving? WHAT DO CUSTOMERS EXPECT? Why are they buying our product or service? STEP 3: FIND FITNESS-CRITERIA
  16. 16. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 SKIPPING? You could skip segments first and declare the world to be your segment and come back to this later. You might loose some insights in the differentiating needs of your served segments. EXAMPLE We discovered that our KMP1 classes are attended by people with different level of Kanban experience. Beginners want to get to know Kanban, advanced students want accreditation and both want tipps. SEGMENTS? There are a lot of possibilities to segment your target customers, the F4P framework suggests to segment by different customer purposes. WHY? You might want to ask in surveys for your segmentation so that you get to know whether your segments have different f4p criteria. If they don’t you could decide to ignore segments for now. STEP 4: SEGMENTS
  17. 17. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 HOW ARE THINGS TODAY? You can do surveys, tell and collect stories. You should look for an idea of what does already work fine and what would you need to change. What kind of metrics are already in place and what do they indicate? You might also want to think about health metrics. WHERE ARE WE UNHAPPY WITH US? Whilst most of the input comes from customers or your front line people telling stories from customers, there might also be things you want to consider concerning your product: Is revenue fine? Does it scale? Do you want more customers for it? STEP 5: STATUS QUO
  18. 18. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 STEP 5: STATUS QUO EXAMPLE
  19. 19. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 WHAT DO YOU WANT TO IMPROVE? Now that you know, what do you want to improve (first)? It might be a good idea not to try to improve too much at the same time. WHAT ARE YOU GOING TO TRY? What are you going to change? Will you start an experiment? Prepare for it and set a time box. STEP 6: IMPROVEMENT
  20. 20. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 Start your change or experiment and reflect on it. Note: Some changes need some time, so if you reflect too early or stop too early you might have experienced a J-curve at work but not your experiment affecting your metrics. DoAct Plan Check STEP 7: DO AND REFLECT
  21. 21. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 IDENTIFY PRODUCT(S)01 DESCRIBE 02 FIND F4P- CRITERIA03 SEGMENTS 04 STATUS QUO 05 IMPROVEMENT 06 DO AND REFLECT07 Depending on your results: 07 Continue experiment 06 Try a different angle 05 Check Status Quo 04 Redo segmentation 03 find more/other f4p criteria 02 rethink design/ implementation/service delivery 01 turn to the next product 01 03 02 05 04 07 06 08 STEP 8: REPEAT
  22. 22. Henning Wolf ● Sven Günther - it-agile GmbH LKCE 2019 CONCLUSION •Fit for Purpose is a rich framework •We can approach it step by step •DYNAMIC provides first hints and steps •We’re glad if you try this by your own and give some feedback •We are going to explore it further

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