Presentation by Peter Shanley, Principle & Evangelist at Neo on August 11, 2014 at Startup Product Talks San Francisco: Going Global With Prezi, Neo And Visiting Guests Peter has a passion for customer-centered product design and organizational change, having worked in both large enterprises and startups to bring new ventures to market. He held intrepreneurial roles at Yahoo! Brickhouse and HP Labs/Snapfish, and he led a strategic pivot at the startup Betable.com. https://www.linkedin.com/pub/peter-shanley/12/348/400 More info: bit.ly/1rj876o http://startupproduct.com/startup-product-sf-going-global-prezi-neo-visiting-guests/

1. Lean Leadership
@PeterShanley / www.neo.com
Spectrums of Control
Text

2. Lean Leadership
@PeterShanley
Don’t be an Asshole
Text

3. Hi, I’m Shanley
Suit in a Binary World
Vanity Metrics:
Buffalo Native
Yale University
Yahoo! Brickhouse
Betable
HP Labs
Neo Innovation
Startup Product
Talk

4. Shuffle off to Buffalo
• Single Track Link Bait
• My Journey
• Management vs. Leadership
• Standing Ovation
“El Diablo con Traje”

5. History lesson: The Erie Canal

6. Advancing Railways

7. Pan Am Expo

8. McKinley Assassinated!

9. Bethlehem Steel

10. Rust Belt Cometh

11. Frederick Law Olmstead Parks

12. Reurbanization Nation

13. Buffalo Bills
In the Super Bowl
4 Times!

14. ...Improbably Lost Each One

15. Through the Years
•Technological Disruption /
•PR Disaster /
•Globalization and Competition /
•Misguided Policy Decisions /
•Management & Process /

16. Change is in the Air
People Patterns

17. Moving with the Times

18. “We cannot choose
our external
circumstances but we
can always choose
how we respond to
them.”
Epictus, 100AD
Psychological
Truth

19. Brave New World
Software is
Eating the World.
!
- Marc Andreesen, WSJ 2011
!

20. Gold Master

21. Model Years
• josh’s beetle’s here

22. Constant Change

23. Continuous Deployment @etsy
What a difference 2 years makes...

24. Skills I Wish I Had
Continuous delivery is a pattern language in growing use in
software development to improve the process of software
delivery. Techniques such as automated testing, continuous
integration, and continuous deployment allow software to
be developed to a high standard and easily packaged and
deployed to test environments, resulting in the ability to
rapidly, reliably and repeatedly push out enhancements and
bug fixes to customers at low risk and with minimal manual
overhead. The technique was one of the assumptions of
extreme programming but at an enterprise level has
developed into a discipline of its own, with job descriptions
for roles such as "buildmaster" calling for CD skills as
mandatory.

25. !
!
Today...
Data is eating the world

26. Data is Not Enough

28. Light in the Dark:
Unknown Unknowns

29. Henry Ford: Faster Horses?

30. Shorter Lifespan

31. !
!
Back in the day...
Another History Lesson

32. Management History

33. Soldiering as Science:
“Consulting Engineer - Systematizing Shop Management
and Manufacturing Costs a Specialty”

34. Extracting efficiency
out of working systems

35. !
Silo’s Photo
Functional Silos

36. Remember the Lifespan

37. !
Silo’s Photo
Dis-functional Silos

38. From Teams to Teaming
@AmyCEdmondson

39. The Lean
Startup
• “The only way to win is to
learn faster than anyone
else.”
• “We must learn what
customers really want,
not what they say they
want or what we think
they should want.”

40. Ideas
Build
Product
Measure
Data
Learn

41. Why, What, How?
Business
Product Engineering

42. What they want Segway to be

43. Why People Use Segways

44. Know the Job you are
Hired to do
<Clayton Christensen
Milkshake Study
University of Pheonix>

45. Magic in the Middle
Valuable
Usable Feasible

46. What about Software?

47. Waterfall vs. Flow

48. Agile Manifesto
• Individuals & Interactions over Process & Tools
• Working Software over Comprehensive Documentation
• Customer Collaboration over Contract Negotiation
• Responding to Change over Following a Plan

49. The User Story
As a... (specific user of the system)
I want... (functional definition)
So that... (value proposition)

50. Giving Context
User Story Waterfall
Why? MRD
What? PRD
How? TRD

51. Lean
Startup
Methodology
• Connect to the Why
• Consumable across Roles
• Stay Flexible + Humble

52. Definition of a Startup
Temporary organization used
to search for a repeatable and
scalable business model.
- 4 Steps to the Epiphany,
Steve Blank

53. Young Framework / Many Tactics

54. Lean not Silver Bullet
• Principals over Dogma
• Practice over Preach
• Context over Vocabulary
• MVP
• Pivot
• Data-Driven + Scientific
• Inconceivable

55. One tool among many
Design Thinking
!
“As a style of thinking, it is generally considered the
ability to combine empathy for the context of a problem,
creativity in the generation of insights and solutions,
and rationality to analyze and fit solutions to the
context. ”
!
- Tim Brown, CEO & President, IDEO

56. Business Model Generation
“A business model describes the
rationale of how an organization
creates, delivers & captures value”
-Alexander Osterwalder

57. Practice > Preach
Feedback Easier said than Done
Ideas
Build
Product
Measure
Data
Learn
Applying Lean Principles to
Improve User Experience
UX
LEAN
JeffGothelfwithJoshSeiden
EricRies,SeriesEditor
THE LEAN SERIES

58. Lean in Practice
1. What problem are you trying to solve?
2. Who is your customer?
3. What is your hypothesis?
4. What is the smallest thing we can make to test
your hypothesis?
5. How will we know if we were right? wrong?
6. Build. Measure. Learn.

59. Assumptions & Hypotheses
We believe small business owners would be
willing to pay between $10-40/month for a
better way to track and plan their spending.
We know we’ll be right when 50 people
choose a plan & sign up for our service.

60. Collaborative +
Consumable: the Canvas
Osterwalder & Maurya

61. 15
“For%whom%are%we%crea,ng%value?”%
Customer Segment

62. 16
“What&value&do&we&deliver&to&the&
customer?”&
Value Proposition

63. Problem Focus
23
“Who%would%we%partner%with%that%will%
provide%us%with%Key%Resources%or%Key%
Ac8vi8es?”%
Key Partners
Why are we doing this?

64. What does this have to do with me?

65. Intrepeneurs Dilemma

69. “You get Paid, Don’t You”
“Businesses exist to get people
who don’t like eachother to get
things done.”
- Ward Cunningham

70. Agile Principles
•Build projects around motivated individuals.
Give them the environment and support they
need, and trust them to get the job done.
•At regular intervals, the team reflects on how
to become more effective, then tunes and
adjusts its behavior accordingly.

71. Getting Things Done

72. Servant Leadership
!
The highest priority of a servant leader is
to encourage, support and enable
subordinates to unfold their full potential
and abilities.
!
This leads to an obligation to delegate
responsibility and engage in participative
decision-making.

73. Command & Control

74. Empower & Inspire

75. Why is Culture important?
Conways Law
"Organizations which design systems ... are
constrained to produce designs which are copies
of the communication structures of these
organizations"
!
modularity / flexibility / speed to deploy / ease of
change / cost of change / accessible /extensible /
human / reasonable / scalable /measurable /
outcome driven /

76. “Bridge” Metaphor
“Bridge” Metaphor

77. Light in the Dark:
Unknown Unknowns

78. Steve Jobs
People don't know what
they want until you
show it to them.

79. Steve Jobs real quote
We have a lot of customers, and we have a lot of research into
our installed base. We also watch industry trends pretty
carefully. But in the end, for something this complicated, it's
really hard to design products by focus groups. A lot of times,
people don't know what they want until you show it to them.
!
That's why a lot of people at Apple get paid a lot of money,
because they're supposed to be on top of these things.
Business Week, 1998

80. Lean
Startup
Methods
• Outcomes over Output
• Minimum Viable Product
• Learn, Measure, Build
• Break Down Silo’s

81. @jboogie
Output
@neo_innovation || @jboogie

82. @jboogie
Outcome
@neo_innovation || @jboogie

83. @jboogie
Impact
@neo_innovation || @jboogie

84. Lean in Practice
1. What problem are you trying to solve?
2. Who is your customer?
3. What is your hypothesis?
4. What is the smallest thing we can make to test
your hypothesis?
5. How will we know if we were right? wrong?
6. Build. Measure. Learn.

85. Minimum Viable Product
If you are not embarassed by
your first version of your
product, you have launched too
late.
- Reid Hoffman, LinkedIn

86. What is an experiment?
•Conversation / Customer Development
•Pitch Measure Learn /
•Concierge Method /
•Wizard of Oz / Mechanical Turk
•MVP / Prototype
•Evolving Product / AB Test

87. A system built on continuous
learning
Risk
Diagram concept: @clevergirl
Learning!
Reduce Risk : Start Small, Pay
Attention, Stay Flexible

88. Pizza Box Teams
•Small
•Dedicated
•Cross Functional
•Outcome in consumable form
•Facilitated Awkwardness with Purpose

89. Control vs. Freedom

90. Plans vs. Planning
Plan vs. Planning

91. Spectrum of
Control
• Reflex: Instinctive and Immediate
reaction to stimuli
• Problem Solving: Creativity
constrained by reality
• Creativity: Dialogue of Ideas
• Imagination: Complete Freedom

92. Spectrum of
Decision Making
• Reflex: Instinctive and Immediate
reaction to stimuli
• Problem Solving: Creativity
constrained by reality
• Creativity: Dialogue of Ideas
• Imagination: Complete Freedom

93. Process as Scaffolding

94. Horizons of
Innovation
•Incremental: adding features
and functionality
•Architectural: new way to
deliver same customer value
•Deep: new value proposition,
new customer base

95. MySpectrum: HP Yahoo PARC

96. • http://www.flickr.com/photos/
ralphrepo_photolog/4104717259

97. Neo on Product
• A great product is not enough, it needs to be the right product.
• The right product is simple, compelling, aligned w business goals.
• Lead with vision, ruthlessly test against the market.
• You cannot measure progress if you aren't measuring anything.
• Deliverables are not progress.
• Innovation abhors functional silos.
• Reduce risk by minimizing cycle times.

98. Patience & Structure
•Act like a VC
•Free your Go to Market
•Infrastructure to Experiment
•Transparency goes Both Ways

99. Spectrum of
Decision Making
• Reflex: Instinctive and Immediate
reaction to stimuli
• Problem Solving: Creativity
constrained by reality
• Creativity: Dialogue of Ideas
• Imagination: Complete Freedom

100. THE PRINCIPLES
Resilience
over strength
Pull
over push
Risk
over safety
Systems
over objects
Compasses
over maps
Practice
over theory
Disobedience
over compliance
Emergence
over authority
Learning
over education
@Joi Principles

101. About those Silo’s...

102. No time like the Present.

103. Lean Leadership
@PeterShanley p@neo.com
Thank you for your time!

104. Matrix of Intrepreneurship
Fits with Brand Values
Process
Fit
Good
Poor
Poor
Tiger Team
Lightweight
Functional
Team
Off Site, Off Brand
Tiger Team
On Site, Off Brand
Tiger Team

105. Obligatory Football Analogy

106. Neo’s Core Tenets
•Patient & Structured capital
•Culture rewards learning and permits failing
•Infrastructure which supports experimentation

107. 107
Business model validation
Product validation
Small team
Culture / Infrastructure to support continuous learning
Stakeholders
Small-chunk, outcome-based, predictable funding
$$$

108. Cynefin: place of multiple belonging
David Snowden

109. Cynefin “Simplified”

111. !
Silo’s Photo
Yes, the Silos remain

112. from Waterfall to Flow

113. DRAFT
High Impact
Low Impact
Known Unknown
Where we like to Play

114. Customer Development
•One person at a time
•Know goals & questions
•Behavior, mindset then feedback
•Excited to hear things unexpected
•Disarm politeness training
•Ask open ended questions
@giffco

115. Customer Development
•Focus on actual behavior
•Listen, don’t talk
•Follow your nose, drill down
•Parrot back, misrepresent to confirm
•Ask for introductions
•Write your notes as quickly as possible
@giffco

116. Version Control
3.2.1.1-CP02
Major
Minor
Maintenance
Patch
Qualifier
GitHub FTW!

117. What if it’s light but you
don’t know where to go?