Combining Agile & Lean Startup Practices

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Experienced Agile teams can be 4 times more productive than non-Agile teams. But how much of this increased productivity is wasted on building the wrong things? By using concepts from The Lean Startup you can dramatically improve your ability to build functionality that users want, will pay to have, and use. This talk will introduce the key ideas of The Lean Startup and how you can use these concepts in you business, even if you aren’t at a startup.

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Combining Agile & Lean Startup Practices

  1. 1. Combining Agile &Lean Startup Practices
  2. 2. Zach Nies
  3. 3. @zachnies
  4. 4. Why am I here today?
  5. 5. Success, but theyweren’t living any dream
  6. 6. Discover & promotethe tools that enable success while living the dream
  7. 7. How I got here
  8. 8. Font Samplerhttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeg
  9. 9. 2,500,000customers
  10. 10. Vision: Reinvent collaboration
  11. 11. Amazing team,exactly the culture Idreamed of creating
  12. 12. Great product
  13. 13. One problem:Bad business
  14. 14. Wasted effort
  15. 15. Why am I doing this?
  16. 16. Live inside the Internet
  17. 17. Building thewrong things
  18. 18. For thewrong people
  19. 19. Biggest wastein our industry
  20. 20. Features Used in a Typical SystemOften or always Sometimesused: 20% Rarely 16% 19% NeverOften 45% 13% Always 7% Rarely or neverStandish Group Study Reported at XP2002 by Jim Johnson, Chairman used: 64% © 2004 Poppendieck.LLC
  21. 21. !"#$%%&&&()*+,-**(.//*012%34--*&+,5!326
  22. 22. Proven science and Lean Startup practices
  23. 23. Build the correctthings for the right people
  24. 24. !"#$%%&&&7+084012%#!131*%14-51,913%:;<=;<>;>?6
  25. 25. We have recipies
  26. 26. !"#$%%-,&+8+#-9+.145%&+8+%@#+4./A219-/6
  27. 27. !"#$%%&&&+(2012%9-B-/1#-4&148*%&-(*-4B+0-*%/+(4.4C%&*D*1.D3-42=%6
  28. 28. EF!.36+*6@04)2G6@04)26H//+.,0-I6J,06=KK<D=KKL66!"#$%%&&&01,341/0!.1*012%.(1)3%6
  29. 29. M-08I6N-,36.,96OC,3!+.6H,94-*6PQ34-2-6R4154.22+,56PQ#/.+,-9$6P2(4.0-6O!.,5-6S##-46@.99/-6T+B-4$6R-.4*1,6P9)0.U1,I6=KK>6
  30. 30. !"#$%%019-(-"-4012%(/15*%9.B+9A/.4+(--%.40!+B-%=KKL%KL%=:%+,3419)0+,5D8.,(.,D.3DQ0/.+2.*#Q6
  31. 31. Which recipe?
  32. 32. Becoming a chef
  33. 33. Gaussian distributions!"#$%%.4Q+B145%.(*%01,9D2.3%K:;=KK:6
  34. 34. Gaussian distributions!"#$%%.4Q+B145%.(*%01,9D2.3%K:;=KK:6 !"#$%%&&&7+084012%#!131*%9.,+-/2144+*1,%:=L;<KKV>6
  35. 35. Probabilities
  36. 36. 80 / 20
  37. 37. Power laws and Pareto distributions!"#$%%.4Q+B145%.(*%01,9D2.3%K:;=KK:6
  38. 38. Other Pareto distributions!"#$%%.4Q+B145%.(*%01,9D2.3%K:;=KK:6
  39. 39. Low probabilityevents have higher impact
  40. 40. Possibilities
  41. 41. An example
  42. 42. 8’1’’ 2’5’’ 3.3 x!"#$%%&&&3-/-54.#!01)8%,-&*%#+03)4-5.//-4+-*%!1&.(1)"!.3%?VLL<VL%W!-D&14/9*D3.//-*3D2.,D@)/3.,DN1*-,D.,9D3!-D*!143-*3D2.,D+,D3!-D&14/9DX-DR+,5#+,5D2--3!32/6
  43. 43. !"#$%%&&&7+084012%#!131*%Y)4B-3*1,%:<?L:V:<KL6
  44. 44. Bill Gates TheEntire 610 xRoom
  45. 45. 99.8 / 1
  46. 46. Business involves many Pareto distributions
  47. 47. !"#$%%&&&7+084012%#!131*%B+43)./-C-*--%?;KZK?=?>>6
  48. 48. How do we make sense of this?
  49. 49. Plausible ProbableUnordered Ordered
  50. 50. Plausible ProbableUnordered Ordered
  51. 51. Plausible ProbableUnordered Ordered
  52. 52. Plausible Probable S E e x a e r c c u h t eUnordered Ordered
  53. 53. Plausible Probable Established Startup CompanyUnordered Ordered
  54. 54. A little more to this at scale
  55. 55. Plausible ProbableUnordered Ordered
  56. 56. Plausible ProbableChaotic Complex Complicated SimpleUnordered Ordered
  57. 57. Plausible Probable Complex ComplicatedChaotic SimpleUnordered Ordered
  58. 58. Plausible Probable Complex Complicated Chaotic SimpleUnordered Ordered
  59. 59. The Cynefin Framework Complex Complicated Cause & Effect is only Cause & Effect is not apparent in obvious, understood retrospect, and not through analysis and repeatable is repeatable Disorder Cause & Effect is Cause & Effect is not obvious to all and is perceivable repeatable Chaotic SimpleUnordered Ordered
  60. 60. How about an example?
  61. 61. Music Industry in 2000 - Napster Complex Complicated Independent Managing a large tour musicians self publishing online Disorder Managing a NIN tour Major label online distribution CD distribution Chaotic SimpleUnordered Ordered
  62. 62. Taking action
  63. 63. Taking Action S E e x a e r c c u h t eUnordered Ordered
  64. 64. Existing Product & UsersComplex Complicated Disorder 6Chaotic Simple
  65. 65. New Product or UsersComplex Complicated Disorder 6Chaotic Simple
  66. 66. Search orExecute?
  67. 67. Where are you? M41&,I6W+26[=KKVDKVD;?6O!.,5-6(C6]-*+5,6[N+,9/-6^10.U1,6;VL:6X.4#-46O1//+,*I6J,06N+,9/-6P9+U1,66
  68. 68. What to doExecute M41&,I6W+26[=KKVDKVD;?6O!.,5-6(C6]-*+5,6[N+,9/-6^10.U1,6;VL:6X.4#-46O1//+,*I6J,06N+,9/-6P9+U1,66
  69. 69. What to doExecute M41&,I6W+26[=KKVDKVD;?6O!.,5-6(C6]-*+5,6[N+,9/-6^10.U1,6;VL:6X.4#-46O1//+,*I6J,06N+,9/-6P9+U1,66
  70. 70. Execute
  71. 71. Flow of Value Feature to Release @3.8-!1/9-46 R419)036_&,-46 ]-B6W-.26 ]-B6W-.26 6]-BD_#*6 75+% 2)1"(8%9$):#;.-% !"#$% &#$()#% &#$()#%% &#$()#%!.% &#$()#%/#$"0% &#$()#% &#$()#% *#+,-.% /#$"0%1%2(336 *#4#3156#.6 1%/#3#$+#% /#3#$+#% <166(.,8$#"%Product Features Story to Code *#3,4#)0%=#$6% =#$6% ?1)0%/#$"0% ?1)0%!.% ?1)0% ?1)0% ]-B6`6W-*36 *#4%@%=#+% *#3,4#)0%=#$6% 2)1"(8%7A.#)% >$8:31-% 1%2(33% 2)1-)#++% B88#5#"% /#3#$+#"%Delivery Team
  72. 72. Idea to Customer 9$.$-#6#.%=#$6% *#3,4#)0%=#$6+% 2)1"(8%9$):#;.-% ?$3#+%@%?(551)% ?)$#-,8% 21)C13,1% *#4#3156#.% F.$G3#6#.% <(+16#)% 2)1"(8%=#$6% 23$..,.-% ?##),.-% @%EB% a <(+16#)% ?(88#++% a >(+,.#++% a B3318$;1.+% a &#$()#% a ?$3#+% a H+#)%?$;+I$8;1.%Portfolio 2),1),;#+% /#3#$+#+% a =#8D.,8$3% a =D#6#+% a /#4#.(#+% a >("-#% a &#$()#% /1$"6$5+%% Allocations Themes Feature to Release @3.8-!1/9-46 R419)036_&,-46 ]-B6W-.26 ]-B6W-.26 6]-BD_#*6 75+% 2)1"(8%9$):#;.-% !"#$% &#$()#% &#$()#%% &#$()#%!.% &#$()#%/#$"0% &#$()#% &#$()#% *#+,-.% /#$"0%1%2(336 *#4#3156#.6 1%/#3#$+#% /#3#$+#% <166(.,8$#"%Product Features Story to Code *#3,4#)0%=#$6% =#$6% ?1)0%/#$"0% ?1)0%!.% ?1)0% ?1)0% ]-B6`6W-*36 *#4%@%=#+% *#3,4#)0%=#$6% 2)1"(8%7A.#)% >$8:31-% 1%2(33% 2)1-)#++% B88#5#"% /#3#$+#"%Delivery Team
  73. 73. Phases hide uncertainty
  74. 74. ;6 =6 <6 :6 >6 ?6 Z6O!.43-4 6]-*+5, 6@#-06 6 6O19- 6 6H00-#3DW 6 Big 6bH 6@C*3-2DW6 6 66 Bang! ;6 ?6 >6 =6 <6 :6
  75. 75. ;6 =6 <6 :6 >6 ?6 Z6O!.43-4 6]-*+5, 6@#-06 6 6O19- 6 6H00-#3DW 6 6@C*3-2DW6 6bH Design 6 66 ;6 Chosen! ?6 >6 =6 <6 :6
  76. 76. Existing Product & UsersComplex Complicated Disorder 6Chaotic Simple
  77. 77. Mitigate uncertainty ;%=6 >6 ?6O!.43-4 6R41313C#- 6 6H5+/-6T-/-.*-*6 66 6 6 6@C*3-2DW6bH 6 66 ;%=6 >6 <,%:,6 <;%:%;6 <=%:=6 <<%:<6
  78. 78. Mitigate uncertainty ;%=6 >6 ?6O!.43-4 6R41313C#- 6 6H5+/-6T-/-.*-*6 66 6 6 6@C*3-2DW6bH 6 66 ;%=6 >6 Design <;%:%;6 <=%:=6 Chosen! <<%:<6 <,%:,6
  79. 79. 2-4x ?
  80. 80. Slack !"#$%%&&&7+084012%#!131*%>&.%?:KKVVZ=<;6
  81. 81. Search
  82. 82. “Not all those who wander are lost J.R.R. Tolkien
  83. 83. !"#$%%&&&7+084012%#!131*%8/-.40!1*%:>:;KZ=ZKZ6
  84. 84. !"#$%%&&&7+084012%#!131*%?L;;:ZL;cdK:%?=L?:LLZLZ6
  85. 85. Anthropologist
  86. 86. !"#$%%&&&7+084012%#!131*%0!)08*+22+,*%=L;VKL?<K<6
  87. 87. “Get out ofthe building!”Steve Blank
  88. 88. “The only valid model of a complex system is the system itself. Murray Gell-Mann
  89. 89. 4 Dots
  90. 90. 6 Connections
  91. 91. 64 Patterns
  92. 92. 10 Dots
  93. 93. 45 Connections
  94. 94. ? Patterns
  95. 95. Patterns35,184,372,088,832
  96. 96. In business a fewpatterns are more valuable than all the rest
  97. 97. Searching is findingthose patterns
  98. 98. !"#$%%&&&7+084012%#!131*%49-012%:<:<V=<:<L6
  99. 99. Track Experiment Run and ValidatedHunch Hypothesis Design Measure Learning The flow of knowledge
  100. 100. Experiment Design
  101. 101. !"#$%%&&&7+084012%#!131*%B+43)./-C-*--%?;KZK?=?>>6
  102. 102. Lean Startup andCustomer Development
  103. 103. !"#$%%&&&*/+9-*!.4-,-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6
  104. 104. !"#$%%&&&*/+9-*!.4-,-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6
  105. 105. !"#$%%&&&*/+9-*!.4-,-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6
  106. 106. !"#$%%&&&*/+9-*!.4-,-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6
  107. 107. Development Marketing Sales
  108. 108. Problem TeamSolution Team
  109. 109. Problem TeamSolution Team
  110. 110. For whom, whatproblem are you solving?
  111. 111. Find prospects andEarlyvangelists
  112. 112. “Customers don’t care about your solution. They care about their problems. Dave McClure
  113. 113. Problem Interview
  114. 114. Who isfeeling the pain?
  115. 115. What painare they feeling?
  116. 116. How do they makethe pain go away today?
  117. 117. !"#$%%&&&7+084012%#!131*%49-012%:<:<V=<:<L6
  118. 118. Testablehypothesis
  119. 119. Problem Interview OverviewRunning Lean by Ash Maurya, page 118.
  120. 120. !"#$%%&&&7+084012%#!131*%.9.0U1%=><>>K=:;?6
  121. 121. Typicalmarket research: Customer attributes
  122. 122. !"#$%%&&&7+084012%#!131*%*-4#+01/)5,)3%;Z=?;?V=V6
  123. 123. Innovationmarket research:Problem discovery
  124. 124. !"#$%%&&&7+084012%#!131*%*-4#+01/)5,)3%;Z=?;?V=V6
  125. 125. What is yourcompetition?
  126. 126. !"#$%%&&&7+084012%#!131*%,8.4+2%?Z?;LVKV=V6 !"#$%%&&&7+084012%#!131*%;?<<V?L:cdKK%=:VL=ZK;?K6
  127. 127. !"#$%%&&&7+084012%#!131*%/+8-A3!-A54.,9A0.,C1,%>??;L?<:K;6 !"#$%%&&&7+084012%#!131*%Y145-(4.e+/%=:=;?V?;=;6
  128. 128. Milkshake Test What job is your solution beinghired to perform?
  129. 129. Where are you? M41&,I6W+26[=KKVDKVD;?6O!.,5-6(C6]-*+5,6[N+,9/-6^10.U1,6;VL:6X.4#-46O1//+,*I6J,06N+,9/-6P9+U1,66
  130. 130. Types of Innovation Sustaining Sustaining M41&,I6W+26[=KKVDKVD;?6O!.,5-6(C6]-*+5,6[N+,9/-6^10.U1,6;VL:6X.4#-46O1//+,*I6J,06N+,9/-6P9+U1,66
  131. 131. Types of Innovation Disruptive M41&,I6W+26[=KKVDKVD;?6O!.,5-6(C6]-*+5,6[N+,9/-6^10.U1,6;VL:6X.4#-46O1//+,*I6J,06N+,9/-6P9+U1,66
  132. 132. !"#$%%&&&7+084012%#!131*%B+43)./-C-*--%?;KZK?=?>>6
  133. 133. Solution Interview
  134. 134. Problem TeamSolution Team
  135. 135. Who:Early adopters
  136. 136. How:Make money
  137. 137. What:Primary problem
  138. 138. The [feature name] will solve the[problem name]
  139. 139. Testing your low fidelity MVP
  140. 140. Solution Interview OverviewRunning Lean by Ash Maurya, page 142.
  141. 141. Build the MVP
  142. 142. FindEarlyvangelists
  143. 143. O)*312-46T-/.U1,*!+#*66 F-(%f1(+/-6R419)03*6J#KL##5KJ)1A%!"#$%%&&&*/+9-*!.4-,-3%*(/.,8%3!-D*3.43)#D1&,-4*D2.,)./D*Q*&D;;V>:Z=:6 g6=K;=6@3-B-6M/.,86
  144. 144. Test Positioning
  145. 145. Product PositioningFor (target customers)Who (have the following problem)The (product name) is a (describe theproduct or solution)That provides (key benefit)Unlike (reference competition),The product/solution (describe the keypoint of competitive differentiation)
  146. 146. Sales Roadmap L%<;%;K6 ;K%<K%;K6 ;%h%;;6 <%h%;;6 Release 1 Release 2 Release 3 Release 4Theme: UI Theme: Reporting Theme: Dashboards Theme: AdminFor X, this UI release For <who>, this release For <who>, this release For <who>, this releaseprovides <what value> provides <what value> provides <what value> provides <what value>Key Features: Key Features: Key Features: Key Features: 1. Feature A 4. Feature B’ 7. Feature B’’ 10. Feature F 2. Feature B 5. Feature C’ 8. Feature D’ 11. Feature G 3. Feature C 6. Feature D 9. Feature E
  147. 147. Get out and sell
  148. 148. Pivot orPersevere?
  149. 149. Integrate into execution
  150. 150. Transition team !"#$%%&&&7+084012%#!131*%208.C*.B.5-%:VZ>V<Z>L6
  151. 151. !"#$%%&&&7+084012%#!131*%B+43)./-C-*--%?;KZK?=?>>6
  152. 152. Primary books that informed this talk
  153. 153. People who informed this talk David Max Ash ClaytonSnowden Boisot Maurya Christensen Mark Eric Newman RiesGeoffrey Steve Moore Blank
  154. 154. !"#$%%&&&7+084012%#!131*%7."1#<:;%==:>VZL<L6
  155. 155. @zachnies

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