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Driving Lean Innovation in Agile Teams. Presented by Arlen Bankston [email protected] @ abankston , @ lithespeed. About Me. Arlen Bankston Co-Founder of LitheSpeed, LLC User e xperience & product development background 15 years of Agile experience - PowerPoint PPT Presentation
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Driving Lean Innovationin Agile TeamsPresented by Arlen Bankston
@abankston, @lithespeed
About MeArlen Bankston• Co-Founder of LitheSpeed, LLC• User experience & product development
background• 15 years of Agile experience• Lean Six Sigma Master Black Belt• Lately 40% training, 20% each of coaching,
product development & management
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• Sensei Story• Agile Blues, Lean Startup• Lean + Agile Innovation
• Holistic Discovery• Risk-Driven Product Backlog• Exploratory Sprints• Data-Driven Sprint Review
• Lean & Agile at Established Companies
Agenda
“Life’s too short to build something nobody wants.”
Ash Maurya, Lean Entrpreneur, Author of Running Lean.
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First, an Idea!
Sensei is an Agile retrospective tool by LitheSpeed. www.senseitool.com
A tool to facilitate Continuous Improvement via the Scrum Retrospective
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Quickly built a prototype
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And, we took it on the road
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Everyone said this was the best thing since…
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And so…
Built, Built, Built
Built some more
Lost our Team, Got
a New Team
Build and they will come?
Customer Discovery
Feature Development
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Agile Blues, Lean Startup
Risks of Agile1. Backlog items are not always validated
against true end-user needs
2. Critical reliance on a fallible Product Owner
3. Lack of clear advice on how and when to “pivot”
4. IT bias… fall back on what we know: build, build, build
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Now What?
• Solution crafted, few customers
• No ideas on how best to proceed
• Keep building?• But…we’re almost out of
runway!
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A Serendipitous Epiphany
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The Lean Startup Cycle: Build-Measure-Learn
• Know your customer• Start small• Fail fast• Test relentlessly• Seek customer validation at all levels
Lean Discovery + Agile Delivery Illustrated
Holistic Discovery
List Market, Customer,
Product risks
Illustrate business
model/case
Risk-driven Product Backlog
Prioritize by riskiest
assumption
Include validation
mechanisms
Exploratory Sprints
Team intercepts users
Team helps design
experiments
Data-driven Sprint Review
Review experiment results
Pivot, Persevere, Punt
Scan for new opportunities
ValidatingProduct Increment
Measure key usage patterns
Focus MVP on early adopters
DISCOVERY
Holistic DiscoveryAssessing key customers, problems & markets
Holistic DiscoveryList Market, Customer,
Product risks
Illustrate business
model/case
Risk-driven Product Backlog
Exploratory Sprints
Data-driven Sprint Review
ValidatingProduct
Increment
Iterative Risk Management
• Are we solving a substantial problem?• What are our technical challenges?Produ
ctRisk
• Who are our ideal customers?• Do we understand their needs?Customer Risk
• Do we have a viable market niche?
• Are we better than the competition?Market Risk
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Test Your Riskiest Assumption
What critical assumptions would sink your business case if untrue?
We assumed that most agile teams did (or at least wanted to do) retrospectives.
Do your teams?
Discovering Customer Needs[In]validate your assumptions by:
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• Interviewing users• Observing users in their native
environments• Manually simulating your system
(“concierge”)• Rapid usability testing• Tracking behavior of customer
cohorts (related groups)
Parallel Collaborative Design & the Design StudioDescribe Key Goals & Context
Sketch Designs Independently
Share Designs
Steal Ideas & Try Again
Select Designs to
Iterate
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Design Studio Approach
Benefits:•Rapid idea generation & iteration•Avoid missed opportunities•Buy-in across team(s)
2-3 cycles
Sensei Lean Startup
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STREAM OF VALIDATED FEATURES
Lean Feature Validation
& Elaboration
Invalidated
Agile Feature Delivery
& Release
Lean Canvas to draft your Business Model
Thanks to Ash Maurya, Leanstack.com23
Draft your business case in a simple, single-page format, and adjust based upon the results of your interviews, prototypes and releases.
Example Lean Canvas for Sensei
Risk-Driven Product Backlog
Challenging & testing your assumptionsHolistic Discovery
Risk-driven Product Backlog
Prioritize by riskiest
assumption
Include validation
mechanisms
Exploratory Sprints
Data-driven Sprint Review
ValidatingProduct
Increment
The MVPA “Minimum Viable Product” might be:• Learning: Onsite observation, fake menus, ads• Pitching: Preorders, comparisons, joint design• Experiencing: Concierge, prototypes
Early releases focus on quickly & cheaply testing ideas.
Later releases focus on scaling.
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MVP
Pivot Key Differentiators
Flexibility & Safety
Scaling & Optimization
Story A1
A2
A3
B1
B2
C1C2C3
D1
D1D2
B3
Epic 1 Epic 2 Key Activity Major Component
Plan Releases & Pivots with a Story Map
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Unbounce for Landing PagesYou can create dynamic landing pages that help you tune your pitch and garner pre-orders with tools like Unbounce.
Validation Board for Experimentation
29 https://www.leanstartupmachine.com/validationboard/
Plan and track experiments to test your assumptions about customers, problems & solutions. Pivot based upon the results that you see.
Adjusting the PlanBased on what you learn, you might:• Stick to the plan • Target another customer group• Target a different need• Expand or contract feature focus• Change platforms or architecture• Change channels• Kill the idea entirely
Persevere, pivot or punt.30
Exploratory SprintsQuick, cheap ways to validate your approach
Holistic Discovery
Risk-driven Product Backlog
Exploratory Sprints
Team intercepts users
Team helps design
experiments
Data-driven Sprint Review
ValidatingProduct
Increment
Concierge to Test without CodingA manual simulation of your product or service.
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Overcoming the fear of being “Salesy”
Balsamiq Mockups for Low-Fi Prototyping
http://balsamiq.com/products/mockups/
Test layouts and flows without coding or graphic design.
Data-Driven Sprint Review
Using data to drive decisionsHolistic Discovery
Risk-driven Product Backlog
Exploratory Sprints
Data-driven Sprint Review
Review experiment results
Pivot, Persevere, Punt
Scan for new opportunities
ValidatingProduct
Increment
Lean Canvas as Dynamic Dashboard
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Think of your project as a set of small experiments.
The results of these experiments should be simply stated and reviewed regularly to guide decisions about product direction.
Thanks to Ash Maurya, author of Running Lean:http://www.runningleanhq.com/
“Pirate” Metrics & Customer Funnels
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Acquisition
Activation
Retention
Revenue
Referral
How many users are interested and find you?Preorders, signups, ad responsesHow is their experience when they do? Successful runs through key use caseDo they stick around for the long run?30, 60, 90 day retention by cohortDo they pay?Ratio of paying users or ROIDo they tell their friends?Successful recommendations
Thanks to Dave McClurehttp://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
Validating Product Increment
Analyzing & evolving your production systemHolistic Discovery
Risk-driven Product Backlog
Exploratory Sprints
Data-driven Sprint Review
ValidatingProduct
IncrementMeasure key
usage patterns
Focus MVP on early adopters
Quantitative A/B & Multivariate TestingSplit (A/B) testing randomly presents users with competing versions of specific application pages and features.• See what works best by running parallel experiments• Choose the winning option after appropriate time
Header
Sign up form
Demo movie
Story
Header
Sign up form
Demo movie
Story
58% of visitors signed up
35% of visitors signed up
A B
A/B Testing Sensei with OptimizelyWe found a 60% increase in registrations just from adding the term “distributed teams” to our landing page.
Zopim Live Chat We envisioned live chat to be largely a help tool, but it ended up connecting us with our most passionate early adopters.
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Watching users in action
Lean & Agile at Established Companies
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Challenges to Innovation at Large Corporations
1. Talent 2. Heavy Governance3. Heavy duty consumer research processes4. Decision culture centered around HIPPO (Highest Paid
Person’s Opinion)5. Success measured as # of units6. Culture that frowns upon pivots
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Lean for the Enterprise at Capital One*1. We hire only the best digital talent and then
massively empower them2. We have designed new workplace environments
to spark innovation3. We have retooled the way we do consumer
insights generation4. We don’t create business cases first - We build
and test prototypes to create the business case5. We build concierge based solutions before we
build the technology6. We measure success as customer engagement
rather than unit production
*Gagan Kanjlia, Senior Vice President, Capital One Bank
Thank You!
Reading List – Lean & Agile Innovation• Running Lean – Maurya• Essential Scrum – Rubin• The Entrepreneur's Guide to Customer Development – Vlaskovits• The Lean Startup – Ries• Discover to Deliver – Gottesdiener• The Other Side of Innovation – Govindarajan• Four Steps to the Ephiphany – Blank• Business Model Generation – Osterwalder
Contact Us for Further Information
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Arlen BankstonExecutive Vice [email protected]
On the Web:http://www.lithespeed.comhttp://www.senseitool.com
"I only wish I had read this book when I started my career in software product management, or even better yet, when I was given my first project to manage. In addition to providing an excellent handbook for managing with agile software development methodologies, Managing Agile Projects offers a guide to more effective project management in many business settings." John P. Barnes, former Vice President of Product Management at Emergis, Inc.