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TRANSFORM FROM PROJECT TO PRODUCT TO SURVIVE THE AGE OF DIGITAL DISRUPTION
- 2. TRANSFORM FROM PROJECT TO PRODUCT TO SURVIVE THE AGE OF DIGITAL DISRUPTION
- 3. Housekeeping • Mute when you are not speaking. • It will be great if you can have your camera switched-on. • If you have any questions, raise it in the chat window and I will go through them towards the end of the presentation.
- 4. Agenda ● About this group & the speaker ● Why transform from Project to Product mindset now? ● Project versus Product Mindset ● NOKIA case study ● Q & A ● Next Meetup agenda
- 5. ABOUT THIS GROUP & THE SPEAKER Mani Maun
- 6. 2012 2015 2017 2018
- 7. 2012 2015 2017 2018 March 2020 Iterative improvements of Digital project delivery Chaos
- 8. On day 0 of COVID Planning Budgeting Prioritisation Resourcing Operations
- 9. Mixed reaction Stop everything and review Carry on things will get back to normality Innovate your way out of this chaos
- 10. Through this group Innovate new means of Production to survive the age of disruption Collaborate with like minded people to innovate new means of production Innovate= Invest in new technology, process and systems to create & deliver new value
- 11. Why transform from Project to Product mindset now ?
- 12. COVID highlighted faults with our current Digital Delivery methods.
- 14. Industrial Revolution Age of Steam & Railways Based on Technological Revolutions and the Age of Software, Carlota Perez Age of Steel & Heavy Engineering Age of Oil & Mass Production 1771 1829 1875 1908 1793-1801 1847 - 1805 1890 - 1895 1929 - 1943 Factory systems Subcontracting Taylorism Fordism Age of Software & Digital 1971 ?? 2000- ? Technological Revolutions
- 15. Traditional Product Vs Digital Product DevelopmentInnovation Time Innovation Time Traditional Product Development Digital Product Development Based on the best-selling book Project to Project, written Dr Mik Kersten
- 16. Why are leaders stuck in old ways of working ?
- 17. Based on Technological Revolutions and the Age of Software, Carlota Perez Installation Period Deployment Period Creative Destruction Wealth Generation Age of Oli & Mass production Age of Software & Digital ?? DegreeofTechnologicalDiffusion 2001 - ?? Financial Capital Production Capital The Turning Point Turning Point
- 18. Installation Period Three stages of Technological Revolution Start End Deployment Period Turning Point Based on Technological Revolutions and the Age of Software, Carlota Perez
- 19. Installation Period Three stages of Technological Revolution Start End Deployment Period New Technology Explosion of Startups = Disruption Innovation + Financial Backing = Redefine means of Production Master new means of production Leverage new Technological systems = Become Industry giants Turning Point Based on Technological Revolutions and the Age of Software, Carlota Perez
- 20. Industrial Revolution Age of Steam & Railways Based on Technological Revolutions and the Age of Software, Carlota Perez Age of Steel & Heavy Engineering Age of Oil & Mass Production 1771 1829 1875 1908 1793-1801 1847 - 1805 1890 - 1895 1929 - 1943 Canal Mania (UK) Railway Mania (UK) London funded global market Infrastructure build-up The Roaring twenties Great British Leap The Victoria Boom Belle Epoque (Europe) Progressive Era (USA) Post-War Golden Age Installation Period Turning Point Deployment Period
- 21. Age of Software & Digital 1971 Dotcom and internet mania Global finance & housing bubbles ?? 2000- ? Age of Software & Digital Installation Period Turning Point Deployment Period
- 22. Based on Technological Revolutions and the Age of Software, Carlota Perez Installation Period Deployment Period Creative Destruction Wealth Generation Age of Oli & Mass production Age of Software & Digital ?? DegreeofTechnologicalDiffusion 2001 - ?? Financial Capital Production Capital The Turning Point Turning Point
- 23. Project Vs Product mindset.
- 24. Project Management Start and End Big upfront Innovation, planning Interchangeable resources that can be assigned and reassigned to projects • Work Processes • Best Practice • Specialization Gantt Chart
- 25. Project Management helped build successfully Burj Khalifa Hoover Dam London Millennium Bridge
- 26. ? = • Creative work • Constant innovation • Unknow factors • Uncertainty • Happens in chaotic environment • Repetition • Based on previous successful projects • Known factors • Happens in familiar environment Building Construction Digital Services
- 27. Cynefin framework by Dave Snowden Project Oriented Mindset Product Oriented Mindset Project plan to optimize resources of 2-3 yearsAdapt > Innovate > Feedback > Respond
- 28. Budgeting Project Oriented Mindset Product Oriented Mindset • To address uncertainty large budget is sourced upfront – which creates waste • Funding requires a new Project • Only measured value delivered to customers receives funding • Product value streams are funded on an ongoing basis.
- 29. Time Frame Project Oriented Mindset Product Oriented Mindset • Defined time frame (1/2 years) after which Project team is disbanded. • Emphasis to complete all the scope and no incentive to address technical debt • Typically, resources work on multiple projects at any given time • The entire lifecycle of the product is covered that includes health, maintenance until the end of life.
- 30. Success Project Oriented Mindset Product Oriented Mindset • Measured to being on time and on budget • Capitalization of resources in large projects • Business incentivized for asking everything upfront • Measured in business objectives and outcomes (e.g. customer value, business objectives) • Focuses on incremental value delivery with regular feedback loops.
- 31. Risk Project Oriented Mindset Product Oriented Mindset • Contingencies for Risks require upfront knowledge of all the risks. This results in overly conservative time frames and inflated budgets • Risks are spread across timeframe & iteration giving businesses an opportunity to pivot at regular check points
- 32. Teams Project Oriented Mindset Product Oriented Mindset • People are considered as interchangeable resources • People are brought to work • People work on several projects at any given time • People are assigned to one value stream consisting of long-lived cross function teams • Steady stream of work is brought to people
- 33. Prioritization Project Oriented Mindset Product Oriented Mindset • Project plan drives prioritization • Focus is on requirements delivery • Roadmap and constant hypothesis testing • Focus on applying the feedback and continual learning from the principles of DevOps
- 34. Visibility Project Oriented Mindset Product Oriented Mindset • A black box approach creates disconnect between IT and Business • Through value streams direct mapping to business customers, enabling transparency
- 35. NOKIA Case Study. Disconnect between IT and Business brought on from Project Management Mindset. Based on the best selling book Project to Project, written Dr Mik Kersten
- 36. Dr. Mik Kersten • Author • Founder & CEO of Tasktop https://projecttoproduct.org/ Twitter: @mik_kersten
- 37. NOKIA in 2009 Nokia was a poster child for Scaling Agile NOKIA Scrum Test Supportive Leadership Agile Transformation was on-trackBased on the best-selling book Project to Project, written Dr Mik Kersten
- 38. IT had issues Build Test Deploy ReleaseSecurity • Architecture did not support 3rd party app installation (APP Store) • Adding new Features was extremely painful
- 39. Business had issues Business Out comes Software Production metrics App Store/ Marketplace Capacitive Touchscreens Proxy metrics How Agile are the teams ? How well teams are using Scrum ? Rapid evolvement of mobile Mobile Ecosystem Number of iteration, stories, release etc. completed. Number of lines of code written. How many people trained of Agile SDM
- 40. Proxy Metrics Proxy metrics are activity-based metric that have nothing to do with business outcomes. Number of lines of code written Number of releases Agile certification Scrum Adaption
- 41. Everything was on track ...
- 43. Nokia even lost on the hardware front Capacity touch screen
- 44. Agile was just a local optimization Business Product Mgmt Hardware Software Testing SecurityOperations Bottleneck: • Continuous integration • Architectural issues • Increasing tech debt
- 45. End-to-end Software Value Stream Business Product Mgmt Hardware Software Testing SecurityOperations ProductEnd-to-End Software Value Stream Flow Feedback Continuous Learning Release on demand
- 46. Business Product Mgmt Hardware Software Testing SecurityOperations App StoreEnd-to-End Software Value Stream Mobile Eco- System End-to-End Software Value Stream Capacitive Screen End-to-End Software Value Stream
- 47. Nokia’s Project oriented mindset Project Mindset Product Mindset Agile transformation was only local optimization Optimize the end-to-end value steam Success based on Proxy metrics Success based on business out comes and value delivered to customers Disconnect between Business and IT – Crucial feedback did not make it back to the business in time. Software product metric relevant for business to understand. So that they can react in time.
- 49. Next meeting up • 16th December 2020 • TOPIC: Software Delivery Value Stream Management
Editor's Notes
- Good evening everyone and very warm welcome to the Project to Product Transformation Meet-up London This is the very first Meet-up and I am very excited to meet and collaborate with all the attendees
- The topic for the very first meet-up is Transform from Project to Product to Survive the Age of digital disruption. Lets get started !!
- Talk about why I decided to setup this Meet-up group & share my back ground Why transform from Project to Product mindset now? Discuss difference between Project and Product mindset Then we will do a case study on NOKIA and discuss in spite of investing in Agile and Scurm why was Nokia disrupted by Apple and Samsung
- To start off I would like to talk why I decided to set-up this Meet-up group And also provide a brief introduction
- My name is Mani Maun and for the last 8 years I have delivered large scale Digital projects and services for a number of leading retailers Delivered a rage of Digital Projects, from on-line wholesaler to on-line groceries and luxury retailers I am also a SAFe certified Program consultant and SAFe partner. For those who do not know SAFe is it a leading framework for implementing Agile at scale. I regular train Executives, Managers, Teams etc on the principles of scaled agile, DevOps and help busineses be sucesffuly in their digital aspitation
- Over the years I slowly and steadily iterated towards building & gathering knowledge of Digital project delivery. Bring on board principles of Agile, Scrum, DevOps etc resulting in each project being more successful that the previous one. But in March this year, all that knowledge and experience did not seem to help with the chaos that was brought on by the COVID-19 pandemic
- On day 0 of COVID-19, when things started to shut down, faults with the current digital delivery methods and means of Production started to surface. This is in spite the business I was working with had mature Agile and DevOps practices. On day 0 of COVID our Planning, Budgeting, Prioritisation, Resourcing and Operations were rendered irrelevant The project I
- Following COVID-19 pandemic, I received mixed reaction to the disruption from business I was working with and industry leaders (1) Carry on things will get back to normality (2) Stop everything and review (3) Innovate I do not think things are likely to get back to pre COVID normal levels the only way to survive is to innovate your way out of this chaos
- Raise awareness that we have to innovate new means of production to survive the age of Disruption Knowledge of Old means of production that we may have build over last decade may not help in the age of Disruption Collaborate and connect with other like minded people to innovate new means of production
- As I was mentioning on day 0 of COVID-19, when things started to shut down, faults with our Planning, Budgeting, Prioritisation, Resourcing and Operations started to surface. But why did this happen? in spite of most business now having mature Agile and DevOps practices.
- Before we further analyse this I would like to Quote from a best selling book written by Dr Mik Kersten, Project to Product We will talk a bit more about Dr Mik Kersten, he is a pioneer in Project to Product transformation Talk about discovering this book pre-covid but it only made sense during the COVID-19 pendemic
- So if we look at the technological revolution that occurred in the last 4-5 hundred years starting from the industrial revolution to the age we are in Age of Software and Digital Each of the technological revolution brought a new way of managing and new means of production For example Age of Steel brought Taylorism (which focuses on labor productivity) is great for building bridges, dams etc. as you can optimizing resources by treating them as a cogs in a machine In 19th century, during the Age of mass production Ford realized that Taylorism is not that great for building complex machinery like cars. This is because you required specialized skills. And now in the age of digital it is all about human and creative tasks. Creating software / digital experience is fundamentally a conversational and creative endeavor. Which is not the same at constructing building or even mass producing complex machineries So if the organizations do not enable and support that they are going to fall behind. A lot of organization are not supporting this right now. Old ways of leadership and management do not work for innovation and digital, hopefully the Nokai case study that we will go through later in the presentation will confirm this. As we all know Project Management assumes that you can treat people as interchangeable resources rather than enabling creativity. By providing autonomy and by teams working with value streams providing them the right structure , bringing work to people rather than people to work.
- As I was saying there is still an assumptions in the old ways of working that worked for bridges and dams, it will work for Digital products as well With traditional Product development: Innovation was a waterfall process where you did design thinking, collaboration up front. Then you would go mass produce the item by templating that as best practice and win the market. Innovation in Digital is not like that – its on going. Digital innovation is an adaptation for the entire organization , to experiment and to learn and to adapt and adjust and pivot when required. Which essentially is creating an end to end flow and feedback loop. In these uncertain and chaotic times, the faster your flow and feedback loop is there is a greater chance to survive the age of disruption.
- Ways of production of the old period will not work for the Age of Software and Digital (SO, Why are leaders stuck in old ways of working) Let understand why?
- As we saw earlier that each technological revolution brought new ways of Production and this was triggered by the Turning Point. Turning point is usually triggered by world events or economic events (we will talk a it more about this in the next slide) But where we are now is that we have gone through age of previous technological revolution (Which was Age of Oil and Mass Production) where handful of tech giant like Facebook, Apple, Amazon etc , they started to look at the new ways of working on how a digital business should be built. Most other businesses are still using methods of production from the past technological revolutions And that is reason we are seeing high levels of digital disruption right now. And the business who do not adapt new ways of production are likely to fall behind and become relics of the past.
- Each of the technological revolutions have 2 distinct periods with a turning point in the middle. The first half is the installation period, that is when a new technology and financial capital combine to create a Cambrian explosion of startups, disrupting industries from the previous age. Then there is the turning point which is historically seen as a period of financial crashes and recoveries. Fuelled by innovation and financial backing, these technological changes then start to redefine the means of production so drastically, that it sparks an outburst of new business. Existing businesses that fail to master the new means of production fail and become relics of the last age. Finally during the deployment period, the organisations that master the new means of production start to leverage the new technological systems to disrupt and displace other businesses to become industrial giants. It is here the production capital of new industrial giants starts taking over. This has happened multiple times in the past.
- Each of the technological revolutions have 2 distinct periods with a turning point in the middle. The first half is the installation period, that is when a new technology and financial capital combine to create a Cambrian explosion of start-ups, disrupting industries from the previous age. So this is what I touched briefly, handful of tech giants who have masted new means of production are now disrupting rest of the businesses. Then there is the turning point which is historically seen as a period of financial crashes and recoveries. And I believe right now we are going through a COVID-19 triggered turning point. During the turning point there are high levels of innovation and increased level of financial backing from venture capitalist. These technological changes then start to redefine the means of production so drastically, that it sparks an outburst of new business (for e.g. Uber, Lyft, etc, these did not exist in the past). Existing businesses that fail to master the new means of production fail and become relics of the last age. Finally during the deployment period, the organisations that master the new means of production start to leverage the new technological systems to disrupt and displace other businesses to become industrial giants. And this has happened multiple times in the past.
- So, during the industrial revolution, the implementation period consisted of Canal Mania which was a period of intense canal building in England and Wales, which started to disrupt how goods were shipped. This followed by a small ression, the turning point. Thereafter, merchants and manufacturers who leveraged these canals to ship goods more efficiently benefited, resulting in the Great British leap during the deployment period. Similar behaviour with other technological revolutions that followed Then during the Age of Railway, there was the Railway mania. Similar to Canal mania that resulted in intense development of railways followed by recession, this started to disrupt existing means of transport. But then in the Victorian boom where Britain mastered railway production and led the world in the designing and construction of railways. In the age of steel and heavy engineering, there was the London funded global boom all over the southern hemisphere primarily financing the railroad but that eventually led to market crashes followed by a long depression. In the deployment period however French and American companies that mastered steel and heavy engineering production became industry giants. Progressing these countries up the ranks during the Belle Epoque (belepok) and US progressive period. In the age of oil and mass product, the roaring twenties characterised by a period of economic prosperity saw Henry Ford’s model Ts rolling off assembly lines, electricity at homes etc but lead to the longest, deepest depression due to a speculative boom that had taken hold in the late 1920. Bringing hardship across the globe. However in the deployment period businesses that mastered mass production saw record advancements in steel and building production, retail and automobiles.
- Right now, we are at the age of Software and Digital and we are only halfway through. And based on Based on the past 4 revolutions, this period of turmoil & chaos would confirm that we are in the Turning point of the Age of Software and Digital. This would also explain the pace of disruption, especially from the venture capitalist fueled new start-ups and tech giants that we are seeing across all industries
- So coming back to our original slide And we were discussing that we have gone through the age of previous installation period where handful of tech giant like Facebook, Apple, Amazon etc , they started to look at the new ways of on how a digital business should be built. Some companies already get are already managing software delivery and innovation at scale Rest of the business if they do not innovate now and start to apply the new ways of production , they won't make it. They will either be taken over by new start-ups that disrupts faster than them or one of these tech giants enters their line of business, creating as existential moment But if the new ways of production is applied, we enter a period of golden age and period of wealth generation.
- If you look at the Kenefin framework (pronounced as) the problem that are obvious and complicated can be delivered via Project Oriented mindset but the Problems that are Complex and Chaotic will need Product Oriented Mindset. Obvious problem where you have tight constraints that can be resolved with a manual e.g. building furniture or bikes Then you have complicated problems, like when you are building a dam or a bridge you can have 2 years Project Plan for it Where we are today is domain of complexity and chaos, where you need to adapt, innovate, get feedback and respond accordingly And Project oriented mindset simply does not support that. Let see some very specific points
- With Budgeting , in Project oriented mindset With Di
- Project mindset is fantastic for well understood projects with a clear defined end Project mindset assumes that a fraction of resources will be required during maintenance That does not work with Digital If the product is used it needs fixes regularly With product mindset ...
- The success with project mindset is
- With project mindset, if you are doing most of the planning upfront, that will also require know of all the risk upfront. In Digital products that is simply not possible. Therefore, you end up with overly conservative time frames and inflated budgets
- Project mindset is good where there is high degree of predictability, this is so that all of the requirements can be delivered. Predictability is extremely low with Digital products Therefore in Product mindset prioritization is based on roadmaps and constant hypothesis testing
- In terms of visibility project mindset takes a black box approach which eventually creates a disconnect between IT and business Typically business would ask - How is the project going, IT responds - Yes, okay, which is an obscure message. A Watermelon effect . A project can be on track and still fail to meet business goals. ( as we will see in the NOKIA case study next) Product mindset bases visibility through value streams direct mapping to business customers, enabling transparency
- Next, we will go through a case study based on Nokia and review how a Project oriented mindset can widen the gap between business and IT, ultimately resulting NOKIA being disrupted by Apple and Samsung
- This case study is based on the best-selling book Project to Project, written Dr Mik Kersten Dr Mik Kersten is the author of this book and is the founder and CEO of Tasktop
- Back in 2009 Nokia was leading Agile Dev methodologies and was regarded as a poster child for Scaling Agile There was the highly regarded NOKIA test, if anyone remembers, to determine if your organization was using SCRUM Nokia had supportive leadership, best of breed and organization willing to transform Agile transformation was on track.
- Their build. Deploy, Release loop was slow and cumbersome Symbian OS (which Nokia had acquired) : Had major architectural issues which prevented them from releasing new Features such as APP Store quickly
- Business outcomes did not tie in with software production metrics Business had realized the urgency to innovate towards an APP Store (3rd party APP integration) and the Capacitive Touchscreen, this was the very reason to roll out Agile But Business outcomes were not well defined into Software Production metrics. This meant business had no visibility of serious issues within IT such as slow deployment and architectural issues On the other hand IT based it success on proxy metrics rather than business outcomes and that meant everything was on track
- Examples of Proxy metrics : Writing a million lines of code or doing multiple release, if these may not deliver Business outcomes. But NOKIA measured their success on such Proxy metrics
- As far as Nokia was concerned everything was on track
- Before they could realize Nokia got disrupted by Apple and Samsung with hardened capability of delivering large scale Software Application
- Nokia even lost on the hardware front Nokia had all the infrastructure and expertise on the hardware front, but they were too slow to move to the capacitive touch screen, which Apple innovated with the launch of iPhone. Nokia simply did not have the feedback mechanism required to sense the market and innovate ahead of its competition
- If we look at NOKIA’s end to end Value Stream, It would seem that Agile transformation was only a local optimization i.e. at team levels rather than the entire value stream The Project oriented mindset at Nokia which measured success on Proxy metrics , meant that business had no understanding of what the real bottlenecks were ? This resulted in a huge gap between Business and IT and that business failed to understand bottleneck such as like lack of continuous integration, architectural issues that prevented 3rd party integration etc
- End to end software value streams includes the entire process of value delivery to the customer. E-2-E value stream must include business who are responsible for strategy, ideation and all the way to the development and feedback instrumentation to understand what values must be delivered to customers and when. For example adoption of DevOps practices of Flow, Feedback and Continuous learning
- If NOKIA had taken a more Product based mindset, The fundamental problems, bottlenecks that developers were encountering (issues with CI/CD, Core platform architectural issues etc.) would have been apparent and NOKIA could have made investments to address them in time. As well as the crucial feedback needed to innovate to bring Capacitive touch to the market ahead of competition.
- In spite of investing heavily in Agile, Nokia’s Project mindset meant that: Agile transformation was only local a optimization as opposed to end-to-end value stream, which resulted in Crucial feedback that did not make it back to the business in time. NOKIA based it success on Proxy metric rather than business outcomes, this winded the Gap between Business and IT. If NOKIA would have taken a Product mindset, by basing success on business outcomes, may be it would have received the right feedback and reacted in-time .
- I hope you have enjoyed and found my presentation helpful, I will now take questions and discussions.