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SCALING LEAN:
PRINCIPLES OVER PROCESS
JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO
GOTHELF.CO / @JBOOGIE
GOTHELF.CO / @JBOOGIE
GOTHELF.CO / @JBOOGIE
GOTHELF.CO / @JBOOGIE
TECH
PRODUCT
DESIGN
AGILE
LEAN
DESIGN THINKING
GOTHELF.CO / @JBOOGIE
STARTUPS
DON’T HAVE THIS PROBLEM
GOTHELF.CO / @JBOOGIE
IN THE ENTERPRISE HOWEVER,
THINGS ARE DIFFERENT
GOTHELF.CO / @JBOOGIE
AND YET, EVERY ENTERPRISE,
WANTS TO BE “LIKE A STARTUP”
GOTHELF.CO / @JBOOGIE
WHEN STRETCHED TO BIGGER ORGS
LEAN AND AGILE BREAK
GOTHELF.CO / @JBOOGIE
WHY DOES LEAN SEEM TO
BREAK AT SCALE?Established corporations are too concerned about tarnishing their brand with an MVP

— David Baldie (@DavidBaldie)
Process. Everything has a process and 85 approvals and a mysterious “they” blocking anything that’s not the old way.

— Emily Tate (@thedailyem)
"Good enough" doesn't get respected as viable option to SHIP IT!

— Jeremy Caverly (@JeremyCee)
Silo'ed managers unwilling to release team members

— Dan Weingrod (@dweingrod)
Valuing business need over user need (not realizing they are the same thing)

— Simeon Poulin (@simeon_P)
"To approve that we need to see a detailed plan and cost benefit analysis, and you must commit to specific deadlines and targets."

— John Waterworth (@jwaterworth)
"We already know what we need to do. Why do we need to waste time 'learning'?"

— John Waterworth (@jwaterworth)
GOTHELF.CO / @JBOOGIE
HOW CAN WE MOVE BIG ORGS
PAST THESE HURDLES?
GOTHELF.CO / @JBOOGIE
SEVERAL WAYS TO THINK ABOUT
SCALING
PROJECT
How do we
incorporate more
learning into each
initiative?
PROGRAM
How do we coordinate
multiple discovery/delivery
efforts focused on the same
goal?
PORTFOLIO
How do we coordinate
multiple programs, enforce
governance and meet
shareholder expectations?
GOTHELF.CO / @JBOOGIE
SCALING CHALLENGES AT EACH LEVEL
PROJECT
•Optimizing for throughput
(velocity)
•Parallel path discovery &
delivery
•No autonomy to make
decisions
•Incremental, not iterative
•Perceived risk to brand/
current customers
PROGRAM PORTFOLIO
•Cross-team coordination
•Knowledge management
•Legacy systems
•Offshoring
•Distributed teams
•Discipline & business unit
silos
•IT as a service provider
•Business value > customer
value
•Annual planning
•Incentive structure
•Governance
•Conway’s Law but in reverse
GOTHELF.CO / @JBOOGIE
THERE ARE NO SHORTAGE OF
RECIPES
15
16
GOTHELF.CO / @JBOOGIE
I can see myself
in the picture. So
I like it!
GOTHELF.CO / @JBOOGIE
THESE ARE ONLY FRAMEWORKS
GOTHELF.CO / @JBOOGIE
SCALING PRINCIPLES,
NOT PROCESSES
“Process brings seductively strong near-term outcomes.”
- Netflix culture presentation (2009)
GOTHELF.CO / @JBOOGIE
PRINCIPLE #1
CUSTOMER VALUE = BUSINESS VALUE
GOTHELF.CO / @JBOOGIE
TACTIC:
MANAGE TO OKR’S
OBJECTIVE
•Qualitative
•Inspirational
•Time bound
•Actionable by the team independently 

(particularly relevant in the enterprise)
KEY RESULTS
•Quantifiable
•How will we know we’ve met our objective?
•Difficult, not impossible
•Cascade down
•Rhythmic
@CWODTKE
EXAMPLE OF OBJECTIVE: BE THE DOMINANT PLATFORM FOR CAR DEALER INVENTORY MANAGEMENT BY Q4 2016
EXAMPLE OF KEY RESULT: 50% OF ALL INDEPENDENT DEALERS ARE OUR USERS
EXAMPLE OF KEY RESULT: 6 OF THE TOP 10 CARMAKERS MANDATE OUR PLATFORM FOR THEIR DEALERSHIPS
EXAMPLE OF KEY RESULT: 40% OF AUTO AUCTION HOUSES USING OUR INVENTORY API
GOTHELF.CO / @JBOOGIE
TACTIC:
EVIDENCE-BASED QUARTERLY PLANNING
SHIP
SENSERESPOND Q1: OKR’S
STAKEHOLDERS
EVERY QUARTER
$/€/£$/€/£
NEW OKR
GOTHELF.CO / @JBOOGIE
TACTIC:
HORIZON PLANNING
Source: McKinsey, Intuit, et al
THREE TIME HORIZONS TO MEASURE PROGRESS
• Customer-related questions to answer: Is there a need? Can we find a solution that meets that need?
HORIZON 3: SHORT TERM
• Sustainability-related questions to answer: Is the market large enough/sustainable? Can we support growth?
HORIZON 2: MID TERM
• Growth-related questions to answer: How do we scale? How do we continuously improve? How do we stay competitive?
HORIZON 1: LONG TERM
GOTHELF.CO / @JBOOGIE
PRINCIPLE #2
VALUE LEARNING OVER DELIVERY
GOTHELF.CO / @JBOOGIE
TACTIC:
BUILD MOMENTUM WITH PILOT TEAMS
GOTHELF.CO / @JBOOGIE
TACTIC:
SANDBOXES
GOTHELF.CO / @JBOOGIE
TACTIC:
ENCOURAGE CREATIVE EXPERIMENTS
Source: @evolvable, @tyro
GOTHELF.CO / @JBOOGIE
PRINCIPLE #3
RADICAL TRANSPARENCY
GOTHELF.CO / @JBOOGIE
TACTIC:
TRANSPARENCY THROUGH RITUALS
GOTHELF.CO / @JBOOGIE
TACTIC:
ACCESS TO CUSTOMERS
The second hardest thing about
Minimum Viable Products is that while
you decide what’s Minimum, the
customer determines if it is Viable.
- @davidjbland
GOTHELF.CO / @JBOOGIE
TACTIC:
ACCESS TO CUSTOMERS
GOTHELF.CO / @JBOOGIE
TACTIC:
ACCESS TO DATA
GOTHELF.CO / @JBOOGIE
PRINCIPLE #4
HUMILITY IN ALL THINGS
GOTHELF.CO / @JBOOGIE
TACTIC:
PRODUCT DISCOVERY
GOTHELF.CO / @JBOOGIE
TACTIC:
“ORBITAL MODEL” FOR SUPPORT OUTSIDE OF
PRODUCT DEVELOPMENT
CORE TEAM
LEGAL
BRAND
MARKETING
FINANCE
GOTHELF.CO / @JBOOGIE
TACTIC:
MODERN STAFFING MODEL
GOTHELF.CO / @JBOOGIE
TACTIC:
MODERNIZE TECH STACK
DevOps is a culture, movement or practice that emphasizes the
collaboration and communication of both software developers
and other information-technology (IT) professionals while
automating the process of software delivery and
infrastructure changes.
- Wikipedia
GOTHELF.CO / @JBOOGIE
TACTIC:
MODERNIZE TECH STACK
Source: @billwscott (slideshare)
GOTHELF.CO / @JBOOGIE
THIS IS A TOP-DOWN EFFORT
“Successful leaders embrace the reality
that their models may be wrong or
incomplete. Only when we admit what we
don’t know can we ever hope to learn it.”
- Ed Catmull, CEO, Pixar
GOTHELF.CO / @JBOOGIE
SEEK OUT THE SHIT UMBRELLA
GOTHELF.CO / @JBOOGIE
LEAN PRINCIPLES THAT WORK AT
ANY SCALE
PRINCIPLE #1: CUSTOMER VALUE = BUSINESS VALUE
PRINCIPLE #2: VALUE LEARNING OVER DELIVERY
PRINCIPLE #3: RADICAL TRANSPARENCY
PRINCIPLE #4: HUMILITY IN ALL THINGS
GOTHELF.CO / @JBOOGIE
THANK YOU!
JEFF GOTHELF / @JBOOGIE / JEFF@GOTHELF.CO

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