In just a few years, the Lean Startup movement has gained influence by promoting a powerful but simple agile product management toolset—one that complements agile software development approaches such as Scrum and kanban. Arlen Bankston explores the tools and techniques product owners at startup companies and others are employing today for project visioning, experimental design, evaluating new feature impact, prototyping, split testing, and gaining early customer feedback. He demonstrates tools like Google Analytics and reveals where to find and how to exploit "pirate metrics." With case studies, Arlen illustrates how these approaches have been applied on large and small projects. Because the Scrum Product Owner role is often oversimplified yet difficult to execute well, these techniques have been welcomed in organizations ranging from Silicon Valley startups to the US government and its contractors. Join Arlen and add your name to the list!
Enhancing Worker Digital Experience: A Hands-on Workshop for Partners
Lean Startup Tools for Scrum Product Owners
1. AT4
Concurrent Session
11/14/2013 10:15 AM
"Lean Startup Tools for Scrum
Product Owners"
Presented by:
Arlen Bankston
LitheSpeed, LLC
Brought to you by:
340 Corporate Way, Suite 300, Orange Park, FL 32073
888 268 8770 904 278 0524 sqeinfo@sqe.com www.sqe.com
2. Arlen Bankston
LitheSpeed
Arlen Bankston is an established leader in
the application and evolution of process
management methodologies such as Lean,
Six Sigma and BPM, as well as Agile
software development processes such as
Extreme Programming (XP) and Scrum. He
is a Lean Six Sigma Master Black Belt and Certified ScrumMaster
Trainer. He also has twelve years of experience in product design,
leveraging principles of information architecture, interaction design
and usability to develop innovative products that meet customers'
expressed and unspoken needs. Arlen has led Agile and Lean
deployment and managed process improvement projects at clients
such as Capital One, T. Rowe Price, Freddie Mac, and the Armed
Forces Benefits Association. Arlen's recent work has centered on
combining Lean Six Sigma process improvement methods with Agile
execution to dramatically improve both the speed and quality of
business results. He has also led the integration of interaction design
and usability practices into Agile methodologies, presenting and
training frequently at both industry conferences and to Fortune 100
clients.!
3. Lean Startup Tools for
Agile Product Teams
Agile Development Practices East, Nov. 14, 2013!
4. Meet the Presenter
Arlen Bankston
• Co-Founder of LitheSpeed, LLC
• User experience & product
development background
• 14 years of Agile experience
• Lean Six Sigma Master Black Belt
• Lately 40% training, 20% each of
coaching, product development
& management
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5. Agenda
Agile & The Lean Startup Movement
Validating your Business Case
•
•
•
•
Getting Out of the Building
Business Model Planning
Tuning your Solution
•
•
•
Landing & Launching
Prototyping
Building Based on Data
•
•
•
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Analytics & Testing
Customer Service
7. Risks of Agile
1.
Backlog items are not always
validated against true enduser needs
2.
Critical reliance on a fallible
Product Owner
3.
Lack of clear advice on how
and when to “pivot”
4.
IT bias… fall back on what
we know: build, build, build
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8. “Lean” Means Just Enough
Manage risk by doing just enough to learn, as
a product progresses:
• How to build the right thing
• How to target the right people
• How technically viable your idea is
• What it’s worth
• How to grow it
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9. Lean Startup Movement – A Brief History
Steve Blank coined “customer discovery”
in the book “Four Steps to the Epiphany”
Steve funded Eric Ries’s startup company
IMVU in 2004
•
•
•
•
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In 2010, Alex Osterwalder
wrote “Business Model
Generation”
In 2011, Eric wrote “The Lean
Startup”
10. Lean Startup in a Nutshell
Describe your business case as !
a set of assumptions
1.
Build!
Ideas!
Product!
Learn!
Measure!
Data!
2.
Talk to early adopters and show!
them prototypes to test assumptions
3.
“Pivot” releases based on both qualitative
& quantitative feedback
4.
Deliver often & with high quality using
agile methods
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11. Lean%Startup%at!Capital!One!Bank!
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
Thanks to Gagan Kanjlia, Senior Vice President, Capital One Bank
13. Most Initial Business Models are Wrong
PDA encryption software led to…!
•
!
!
•
The Game NeverEnding (a web-based
MMORPG) led to…
14. Lean + Agile Innovation Process
Find the right product
market fit…
Customer%
Discovery%
Customer%
Valida7on%
Pivot
Then execute and iterate on
it incrementally.
LEAN
FEATURE
VALIDATION
AND
ELABORATION
Product
Backlog
AGILE
FEATURE
DELIVERY
AND
RELEASE
15. Discovering Customer Needs
[In]validate your assumptions by:
• Interviewing users
• Observing users in their native
environments
• Manually simulating your
system (“concierge”)
• Rapid usability testing
• Tracking behavior of customer
cohorts (related groups)
13!
16. Problem Interview
Talk with early adopters
to learn whether they
share your perception of
the problem.
This is a sample interview
script to validate & rank
problems with users.
14!
Thanks to Ash Maurya, author of Running Lean for this format:
http://www.runningleanhq.com/
17. MacGyver’s Kitchen
What do we do with unused food in our
pantry? Felt that new dieters were the audience.
• We split into three teams
• We went to Macy’s Cellar looking for
people in the cooking section
• We went to Whole Foods
• We grabbed people off the street in Times Square
Results?
• We learned: Young singles and families were most
interested, and more for variety than diet or budget.
• 88% of the people we spoke to gave us their email
addresses (35 emails)
18. Javelin%Board%for!MacGyver’s!Kitchen!
Don’t know
what to do
with food in
pantry
Don’t know
what to do
with food in
pantry
To validate:
To validate:
60%
60%
Invalid
Customer
Valid
20%
7/34
Wrong
customer,
budget &
waste not
important.
80%
35/44
Concerned
with time,
variety,
serving size
19. Validation Board for Experimentation
Plan and track experiments to test your assumptions about customers,
problems & solutions. Pivot based upon the results that you see.
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hBps://www.leanstartupmachine.com/validaHonboard/!
20. The Pivot
Based on what you learn, you might:
• Stick to the plan
• Target another customer group
• Target a different need
• Expand or contract feature focus
• Change platforms or architecture
• Change channels
• Kill the idea entirely
Persevere, pivot or punt.
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37. Customer%Funnels%and!Cohort!Analysis!
Study your users’ behavior as individuals.
“Cohorts” are usually groups that arrive at
the same time and share the same initial
experience.
!
Popular tools:
• Mixpanel
• KISSMetrics
Tracking%reten4on%of%cohorts%over%4me.%
38. “Pirate”%Metrics!&!Customer!Funnels!
Acquisi7on%
How many users are interested and find you?
Preorders, signups, ad responses
How is their experience when they do?
Successful runs through key use case
Ac7va7on%
Reten7on%
Do they stick around for the long run?
30, 60, 90 day retention by cohort
Do they pay?
Ratio of paying users or ROI
Revenue%
Referral%
Do they tell their friends?
Successful recommendations
Thanks to Dave McClure
http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
36!
40. QuanHtaHve!A/B%&%Mul7variate%Tes7ng%
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!
A%
B%
Header!
Story!
Demo!
movie!
Sign%up%
form%
Story!
58%%of!visitors!
signed!up!
35%%of!visitors!
signed!up!
45. Reading%List%–!Lean!&!Agile!InnovaHon!
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Running Lean – Maurya
Essential Scrum – Rubin
The Entrepreneur's Guide to Customer
Development – Vlaskovits
The Lean Startup – Ries
Discover to Deliver – Gottesdiener
The Other Side of Innovation – Govindarajan
Four Steps to the Ephiphany – Blank
Business Model Generation – Osterwalder
46. Contact Us for Further Information
Arlen Bankston
Managing Partner,!
LitheSpeed
Arlen.Bankston@lithespeed.com
On the Web:
http://www.lithespeed.com
http://www.sanjivaugustine.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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