Upcoming SlideShare
Creating an Agile Business
- Creating an Agile BusinessMile High Agile
- Zach Nies@zachniesZach Nies, Chief TechnologistRally Softwarezach.nies@rallydev.com
- Font Samplerhttp://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg
- I love to changeindustries
- Apply newdisciplines
- Become disciplinedexplorers…
- who know how tobalance explorationand execution
- Build whatpeople want
- Createa viable business
- What happened to this company?
- 1 2 5 iPhone Released 1 iPhone App SDK Released 2 Android w/ Nav Released 5 Major Recession 3 3 TomTom iPhone App 4 4
- A lot can !happen in !1 year.!
- The characteris3cs of innova3on are changing
- Is your businessAgile enough?!
- Turn thesedisruptions intoopportunities!
- What’s changing?
- Technology adop3on
- hAp://upload.wikimedia.org/wikipedia/en/4/45/DiffusionOfInnovaKon.png
- hAp://upload.wikimedia.org/wikipedia/en/4/45/DiffusionOfInnovaKon.png
- What if…!
- hAp://upload.wikimedia.org/wikipedia/en/4/45/DiffusionOfInnovaKon.png
- hAp://hbr.org/2013/03/big-‐bang-‐disrupKon/
- Disrup3on has a bigger impact
- Time to excellence
- hAp://en.wikipedia.org/wiki/File:DisrupKvetechnology.gif
- hAp://en.wikipedia.org/wiki/File:DisrupKvetechnology.gif Excellence!
- Some examples…!
- 1984!
- 2006!
- About 20 years!
- 2001!
- 2006!
- 5 years!
- 2007!
- 2010!
- 3 years!
- 2010!
- 2012!
- 2 years!
- 2008!
- 2012!
- 4 years!
- 1979!
- 1989!
- 10 years!
- 5 years!
- 2.5 years!
- 1.5 years!
- Disrup3on can sneak up on you
- Impact on companies
- 500
- Question:!!How long does the average companyon this list survive?!
- 1958: !Average lifespan was 61 years!!2012: !Average lifespan was 18 years!
- Market churn creates uncertainty
- Your business needs to become more Agile
- Don’t fall off the commitment cliff
- CostValueTimeValueValue of commitment – Normal!
- CostValueTimeValue Opp CostValue of commitment – Normal!
- CostValueTimeValue Opp Cost Total Value Value of commitment – Normal!
- CostValueTimeValue Opp Cost Total ValueOptimal commitment!Value of commitment – Normal!
- Value of commitment – High Uncertainty!
- CostValueTimeValueValue of commitment – High Uncertainty!
- CostValueTimeValue Opp CostValue of commitment – High Uncertainty!
- CostValueTimeValue Opp Cost Total ValueValue of commitment – High Uncertainty!
- CostValueTimeValue Opp Cost Total Value Optimal commitment!Value of commitment – High Uncertainty!
- An example…!
- CostValueTimeValue Opp Cost Total ValueAbility to respond!Optimal commitment!
- CostValueTimeValue Opp Cost Total ValueAbility to respond!Fastest Response?!
- Agile teams & organiza3on
- Steering vs. Planning
- Technology adop3on is a human phenomenon
- Not a technological phenomenon
- An example…!
- Tribes are more connected
- Change creates uncertainty
- Chaotic! Simple!Complicated!Complex!Uncertainty!
- TakeAction!FollowRules!Analyze!Guess &Learn!Chaotic! Simple!Complex! Complicated!Uncertainty!
- TakeAction!FollowRules!Analyze!Guess &Learn!Chaotic! Simple!Complex! Complicated!Bureaucrat!Engineer!Firefighter! Entrepreneur!Uncertainty!
- TakeAction!FollowRules!Analyze!Guess &Learn!Chaotic! Simple!Complex! Complicated!Firefighter! Bureaucrat!Engineer!Entrepreneur!Uncertainty!
- ExploreExecuteUncertainty!
- EmergeAnalyzeUncertainty!
- ExperimentPlanUncertainty!
- Chaotic! Simple!Complicated!Complex!Product lifecycle!
- Chaotic! Simple!Complicated!Complex!Product lifecycle!
- Chaotic! Simple!Complicated!Complex!Product lifecycle!
- Chaotic! Simple!Complicated!Complex!Product lifecycle!
- Chaotic! Simple!Complicated!Complex!Disruption!Product lifecycle!
- Chaotic! Simple!Complicated!Complex!Disruption!Product lifecycle!
- Naviga3ng uncertainty
- Discovering demand Amplifying engagement
- hAp://www.flickr.com/photos/isaacmao/380257543 Create a plan topredict the future!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITH CUSTOMERS!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
- Market research!Product definition!Product requirements!Detailed plan!Alpha release!Beta release!Final release!FIRST CONTACT WITHCUSTOMERS!
- HOW MANYGUESSES?!
- FIRST CONTACTWITH POTENTIALCUSTOMERS!
- hAp://www.flickr.com/photos/oregondot/4132135156
- Obscure the uncertainty with details!
- Embrace andreveal the uncertainty!
- Sounds like a startup!
- How does Eric Ries define a Lean Startup?!
- Where doesuncertainty live?
- Brown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon.
- Where are you?
- Brown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon.
- Brown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon. Level of uncertainty
- Type of innovationSustainingBrown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon.
- When toexplore vs execute?
- What to doBrown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon. Execute
- What to doBrown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon.
- What to doBigCompaniesBrown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon.
- BigCompanieshAp://www.flickr.com/photos/ironnickel/6076087519
- StartupshAp://www.flickr.com/photos/elcapitan/2387917709
- Example – Taxi Cabs
- hAp://www.flickr.com/photos/emilyrides/5048843409
- Brown, Tim (2009-‐09-‐16). Change by Design (Kindle LocaKon 1984). Harper Collins, Inc.. Kindle EdiKon.
- Discover the future!Validate!Discover! Transition!Business Model!Vision and Empathy!FrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearn
- “Get out of thebuilding!”!Steve Blank!
- “Meaning emergesthroughinteraction”!Dave Snowden!
- Vision and Empathy!Discover the future!
- hAp://www.flickr.com/photos/klearchos/4541072707 Vision!
- The idea is NOT theonly thing thatmatters.
- What does matter?According to Simon Sinek
- hAp://www.flickr.com/photos/usarmyafrica/4553749920 Empathy!
- hAp://www.flickr.com/photos/skillerphotos/7875656716
- Discover the future!Business Model!Vision and Empathy!
- Business Model!
- 1 23456789
- Example – iPod
- hAp://www.flickr.com/photos/75001512@N00/4683351383 Walkman forthe digital ageDesign, Manufacturing,Marketing, Support+ Margin & ProfithAp://www.flickr.com/photos/mrmonochrome/93535053
- Discover!Discover!Business Model!Vision and Empathy!
- Discover!Problem Discovery!We understand theproblem a customer wants solved!Discover!
- Customers don’t careabout your solution.They care about theirproblems.“Dave McClure
- hAp://www.flickr.com/photos/adacKo/2535502416
- Typicalmarket research:Customerattributes
- hAp://www.flickr.com/photos/serpicolugnut/172616929
- Innovationmarket research:Customercircumstances
- hAp://www.flickr.com/photos/icanchangethisright/3195180388
- hAp://www.flickr.com/photos/twostoutmonks/664314897
- What job isyour solution beinghired to perform?Milkshake Test
- hAp://www.flickr.com/photos/icanchangethisright/3195180388
- hAp://www.flickr.com/photos/twostoutmonks/664314897
- Competition
- hAp://www.flickr.com/photos/16339684@N00/2498270160 hAp://www.flickr.com/photos/nkarim/6761890929
- hAp://www.flickr.com/photos/icanchangethisright/3195180388
- hAp://www.flickr.com/photos/jorgebrazil/2421696121 hAp://www.flickr.com/photos/like_the_grand_canyon/5661863401
- hAp://www.flickr.com/photos/twostoutmonks/664314897
- hAp://www.flickr.com/photos/makelessnoise/333188801
- hAp://www.flickr.com/photos/rodrigofavera/2636733253
- Discover!Solution Validation!Our product idea solves the customer’s problem!Discover!
- Test a low fidelityMinimum ViableProduct
- Goal: Get realfeedback withoutbuilding a realproduct
- How?
- Video Demo (Landing Page)ConciergeWizard of OzCrowd FundingSingle Key Feature
- Video Demo (Landing Page)ConciergeWizard of OzCrowd FundingSingle Key Feature
- Create a real productexperience with theleast effort possible
- The MVP…
- hAp://www.seanpercival.com/blog/2012/10/21/pre-‐inventory-‐startups/ Delivering Happiness: A Path to Profits, Passion, and Purpose By Tony Hsieh
- Discover!Business Validation!Our business model can be profitable!Discover!
- High level business modelhAp://www.forentrepreneurs.com/saas-‐metrics/
- Discover the future!Business Model!Vision and Empathy!Pivot or Persevere?!
- Validate!Validate!Business Model!Vision and Empathy!
- Validate!Prepare to Sell!The founders can: Understand the flow ofmoney and sell the offer!Validate!
- You?
- FindEarlyvangelists
- Validate!CloseDeals!Our draft sales plan willclose or activatecustomers!Validate!
- Sales FunnelhAp://www.flickr.com/photos/carlagates247/5524789016
- Activation FunnelhAp://www.flickr.com/photos/500hats/577630547
- Validate!PackageOffer!We can package, price,position and promote our offer!Validate!
- For (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)Product Positioning
- Discover the future!Business Model!Vision and Empathy!Pivot or Persevere?!
- Discover the future!Transition!Business Model!Vision and Empathy!
- Transition!TransitionTeam!We have budget and a cross departmentaltransition team!Transition!
- Managing a Porcolio The Three Horizons Model Horizon 1 0 to 12 months Horizon 2 12 to 36 months Horizon 3 36 to 72 months Current Businesses Generate today’s cash flow High Growth Businesses Today’s revenue growth + tomorrow’s cash flow Growth OpKons OpKons on future high-‐growth businesses Expected Window of Returns Accumulated Total Returns Figure 2.4
- 20% time orseparate H3 groups?DedicatedH2 transition
- Four Modes of ExecutionExecution Mode Invention Deployment Optimization TransitionsType of LeaderVisionaryInventorPragmaticDeployerConservativeOptimizerPragmaticOrchestratorCore Competence Creativity Competitiveness Control CollaborationCore Attribute Spontaneous Tough-minded Prepared EmpatheticDecision Style Intuition Experimentation Deliberation ConsensusFunctions Most inAlignmentR&D, CreativeServicesSales, EngineeringFinance,OperationsHR, Marketing,Customer SupptFigure 6.4
- Transition!Integrateinto Depts!Transition!Departments can take onour new offer!
- FromExplorationtoExecutionhAp://www.flickr.com/photos/mckaysavage/497593758
- InventorsInventor to department transition
- OrchestratorInventors DeployersDepartmentsInventor to department transition
- OrchestratorInventors DeployersDepartmentsInventor to department transition
- OrchestratorInventors DeployersDepartmentsInventor to department transition
- OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringSalesMarketing
- OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
- OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
- Validate!Roll offInventors!We no longer need ourinventors on the team!Transition!
- OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
- OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
- OrchestratorInventors DeployersDepartmentsInventor to department transitionProductEngineeringMarketingSales
- DepartmentsInventor to department transitionProductEngineeringMarketingSales
- Discover the future!Validate!Discover! Transition!Business Model!Vision and Empathy!
- Discover the future!FrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearn
- Guesses!Knowledge!Experiments!
- Empathize & Frame!Test & Measure!Build&Ship!Learn&Share!Experiments!
- TAKE EACH MAJOR GUESS
- RUN AN EXPERIMENT
- hAp://www.youtube.com/watch?v=Iyjs3zeoSrM
- hAp://www.richard-‐feynman.net/gallery.htm
- Feedback!
- Feedback!
- Feedback!
- Culture
- No blame or shame
- Democratize data
- Use quantitativeand qualitative data
- Distributedecision making
- DiversityIndependenceDecentralizationAggregation
- Run smallexperiments
- hAp://www.flickr.com/photos/5wa/6400997231 Slack
- Discover the future!Validate!Discover! Transition!FrameMeasureBuildLearnBusiness Model!Vision and Empathy!FrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearnFrameMeasureBuildLearn
- Disciplined explora3on
- Extend Agility intoyour business!
- Take advantage ofmarketopportunities!
- What happened to this company?
- 1 Began Using Lean Startup 1 2 $50M in New Product Revenue 2 3 1800 Concurrent Experiments 2
- Books that informed this talk
- GeoffreyMooreDavidSnowdenAshMauryaTimBrownClaytonChristensenSteveBlankEricRiesPeople who informed this talkBrant CooperPatrickVlaskovits
- hAp://www.flickr.com/photos/flaAop341/224597838
I also appreciate how you included URLs to the images you used. Some images apply to an upcoming presentation I have for med schools, and I appreciate being able to find the source image.