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The 3 Revolutions (Agile, Lean, Lean Startup)
The document reflects on the author's journey from traditional waterfall development to agile methodologies, emphasizing the importance of empowerment, continuous improvement, and designing processes to enhance product development flow. It discusses the challenges faced during the implementation of lean practices at the enterprise level and introduces concepts from lean startups to address extreme uncertainty in creating new products. Ultimately, the author stresses the significance of validating hypotheses through experimentation and data to align with customer needs and achieve business success.
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The 3 Revolutions (Agile, Lean, Lean Startup)
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- 3. a few yearsago, this would have been my answer…
- 4. Waterfall focused on speed& efficiency through specialization
- 5. Despite all thebest intentions, however, Bringing projects to “success” always required heroic efforts
- 6. … And therisk of failing to meet customer expectations was high “ Software and cathedrals are much the same – first we build them, then we pray. --- Samuel T. Redwine, Jr.
- 7. Luckily, in 2001,I met someone who OPENED MY EYES…
- 8.
- 9. “It was thenthat I discovered the true nature of the problem.”
- 10. “I started by applyingXP technical practices”
- 11. “… Which Ilater integrated with scrum”
- 12. “My teams andI fully embraced Agile development to grow a world-class software organization”
- 13. We syncronized ourwork daily To DO Doing Done Burndown Work Left Family 1 Days Unplanned Next
- 14. We systematically reviewedour process Good Bad Next Do Less Do more Start Doing Stop Doing Keep Doing
- 15. The revolution wasrepresented by the “inspect & adapt” approach to development
- 16. Our culture wasbased on “empowerment” rather than “command & control”
- 17. We crafted opinionatedsoftware “The best software has a vision. The best software takes sides. … Decide what your vision is and run with it.” -- 37 signals
- 18. We won awards andrespect…
- 19.
- 20.
- 21. “July 2009 wasthe wettest July on record in Ireland”
- 22. “I’ll remember itas the month MATTEO was born”
- 23. BUT it isalso the month I had to let go of a dream
- 24.
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- 26. WITH A GROWING Familyto support…
- 27. … I didthe only thing that was left for me to do…
- 28. I became aLean & Agile consultant!
- 29. On my firstmission, a cio asked me a question that haunts me to this day…
- 30. “If you wereso smart, why did you fail?”
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- 32. The adoption ofAgile practices at enterprise level proved to be a mighty challenge
- 33. Scrum works Except whenit doesn’t
- 34. “to succeed…” …you'll needto design processes that improve the product development flow…
- 35. … Optimize thewhole, rather than just focus on unit costs…
- 36. … and developa culture of continuous improvement
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- 38.
- 39. er…Alternatively, you canbuy a bunch of cool cloud-based enterprise 2.0 solutions and/or send your people to a “certified scrum gladiator”tm course.
- 40. Teams gained thesupport of Entreprise transition communities, communities of practice and improvement workgroups Improvement backlog Enterprise Transition Community (ETC) Process Definition Workgroup .. Continuous Integration Workgroup .. Architecture CoP .. Scrum CoP … Automated testing CoP … etc
- 41. Customers Lean destroyed themyth that splitting work Kaizen Current State Value-Stream Map in big batches improves the economies xx to yy (high season) Period calculated: from of Acme Reinsurance Push arrow F: 200/month scale. Date: xxx inbox Author: Claudio Perrone Average: 10/day Pull arrow Proc. Lead Time: 71.75h Non VAT 3d Value Adding Time (VAT) 0.25h 2d 2.5d 5h 2h 1h 1h Calculate premium 2h Submit quote Proc. Efficiency 12.9% Train on Kanban pulling Reinsurance placement Request for reinsurance Register 20jobs Clean & analyze data FIFO Reduce batch sizes 10jobs $ value Calculate risk 2jobs due date Clarify classes of service C/T too long Setup Kanban board 5jobs Improve system validation Total Cycle Time: 9.25h
- 42. … And providedmany “tools” to obliterate Customers the competition Future State Value-Stream Map Period calculated: from xx to yy (high season) Acme Reinsurance Date: xxx F: 200/month Pull arrow Author: Claudio Perrone Average: 10/day Proc. Lead Time: 46.25h Non VAT 2d Value Adding Time (VAT) 0.25h 1d 1.5d 4h 2h 1h 2h 1h Calculate premium Submit quote Proc. Efficiency 17.8% Train on Kanban pulling Reinsurance placement Request for reinsurance Register MAX 5 jobs Reduce batch sizes Clean & analyze data MAX 4 jobs Calculate risk MAX 2jobs Clarify classes of service C/T too long Setup Kanban board MAX 2jobs Improve system validation Total Cycle Time: 8.25h
- 43. I Integrated thekanban method to enable an evolutionary approach to change
- 44. KANBAN enabled theintroduction of agility in otherwise unsuitable contexts Development Ordered Backlog 3 6 Rq. Fixed DOD DOR Expedite 1 PreTesting CD Ready Smoke Test PreTested Done DOD Integration Done Integration Team (Complex configuration) DOD
- 45. But it wasonly the beginning
- 46. A war wastragically consuming behind corporate walls
- 47. Firefighting, arbritrary targetsand autocratic leadership were undermining the opportunity for a real transformation
- 48. The traditional agileapproach towards management wasn’t going to be effective … You are a “chicken”. You shouldn’t even talk
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- 52. W. Edwards demingbelieved that… “ 95% of variation in worker’s performance is governed by the systems ---W. Edwards Deming
- 53. Perhaps… “ We should workon our processes, not the outcome of our processes. ---W. Edwards Deming
- 54. And I wouldadd… “ Let’s design systems as if tomorrow we were more stupid than today. --- Claudio Perrone
- 55. “At Toyota, improvingand managing are one and the same” Traditional thinking: Normal daily management + improvement Toyota’s thinking: Normal daily management = Process improvement
- 56. “you manage things,you lead people” “ There are three kinds of leaders. Those who tell you what to do. Those who allow you to do what you want. And lean leaders who come down to the work and help you figure it out. --- John Shook, Chairman & CEO, Lean Enterprise Institute
- 57. During my workwith “a3 thinking”, a Toyota management process to systematically solve problems, improve and mentor…
- 58. I discovered thata3 thinking = Lean thinking, a vivid expression of the scientific method!
- 59. “The Lean revolutiongave a purpose and method to management” “ I want you to use your own heads. And I want you actively to train your people on how to think for themselves. --- Eiji Toyoda
- 60. “Hence, I offeryou my own definition” “ Lean is a business strategy to make money* THROUGH the development of people (*) replace with “create customer value” or “achieve results”, if you prefer
- 61. Using Lean andagile, I brought operational excellence to many clients, from large enterprises to fast-growing companies around Europe
- 62. But that old questionstill remained unanswered…
- 63. … Until oneday
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- 65. I entered anew world
- 66. ... A worldthat recognized the extraordinary challenges I once faced “ A startup is a human institution designed to create new products and services under conditions of extreme uncertainty. --- Eric Ries
- 67. It gave mea path to create a sustainable business around products that customers want data, feedback, insights Customer development PROBLEM/ SOLUTION FIT Customer discovery PRODUCT/ MARKET FIT Customer validation stop stop SCALE Customer creation stop Company building Lean & Agile development Pivot hypothesis, experiments, insights Problem: Unknown solution: Unknown
- 68. ... A pathcharacterized by frequent scientific experiments… Learn Build (establish an hypothesis) (Build an experiment to test that hypothesis) Measure (Determine a quantitative or qualitative method to evaluate that hypothesis.)
- 69. … To acceleratethe rate of learning… Learn idea (whether to pivot or persevere) Build (Turn ideas into product) (often a series of MVPs) data Product Measure (How customers respond)
- 70. … And measurereal progress towards success Acquisition Activation retention revenue referral How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do user tell others? ( see Dave McClure “Pirate” metrics) Cohort analysis
- 71. “ It is notthe employer who pays the wages. Employers only handle the money. It is the customer who pays the wages --- Henry Ford
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- 73. I document mybusiness model(s) explicitly Top 3 Problems Existing alternatives Solution Key metrics Cost structure www.leancanvas.com Unique Value Proposition Unfair Advantage Channels Revenue streams Customer Segments Early adopters
- 74. my vision isbuilt on opinions untested assumptions
- 75. … which Isystematically validate with experiments…
- 76. … that forceme to “get out of the building”
- 77. …and gather datato verify whether my actions affect customer behavior IN PROGRESS BACKLOGS Observations/ INSIGHTS Hypotheses SELECTED DESIGN/BUILD EXPERIMENTS PARTIAL ROLLOUT DONE VALIDATE QUALITATIVELY VALIDATED LEARNING FULL ROLLOUT VERIFY QUANTITATIVELY DONE DONE
- 78. specifically... I execute tasks Todevelop features That are part of experiments That I run to validate hypotheses That I formulate thanks to observations about the world that surrounds us.
- 79. I Use A3thinking to systematically focus on the “one metric that matters” in the current stage of my business Target Increase conversion rate from 8% to 10% by Mar 31st 2013
- 80. I validate mysolutions, OFTEN with low fidelity MVPs
- 81. … and Activateenthusiastic earlyvangelists with a glimpse of a future that will come
- 82. … until, ofcourse, my next pivot www.a3thinker.com
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- 85. “ Don’t dream ofsuccess. Create the conditions to inevitably converge to it. --- Me (1967 - )
- 86. “ Talk does notcook rice claudio@agilesensei.com www.agilesensei.com www.a3thinker.com www.twi6er.com/agilesensei --- Chinese proverb
- 87. Thank You! Claudio Perrone claudio@agilesensei.com www.agilesensei.com www.a3thinker.com www.twi6er.com/agilesensei
- 88. P.S.: The futureis here.