agile, lean & you · the lean startup • typical market research and management methods...

Agile, Lean & You…and me, not a Lean expert

What’s up Doc?• Brief recap of Agile and an intro to Lean

• Share my experience applying Lean

• Preview how Lean is being incorporated into our Product Kanban process

• Discuss the problems we see with our development process

• Identify if/how Lean can help solve those problems

Agile Values

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

+12 Agile Principles

from Agile Manifesto 2001

Agile Values

= A better way to develop

the right software

Lean Principles

• Optimize the Whole

• Focus on Customers

• Energize Workers

• Eliminate Waste

• Learn First

• Deliver Fast

• Build Quality In

• Keep Getting Better

by Tom & Mary Poppendieck in 2003

Lean Principles

= A better, faster way

to develop the right software

KanbanKanban [kahn-bahn] (noun) A visual process management system that tells what to produce, when to produce it, and how much to produce.

6 Core Practices of Kanban

by David J Anderson in 2003

• Visualize Workflow

• Limit WIP

• Manage Flow

• Make Policies Explicit

• Implement Feedback Loops

• Improve Collaboratively, Evolve Experimentally

Kanban

= A better, faster process to develop the right software

The Lean Startup

• Typical market research and management methods don’t work with startups, there’s too much uncertainty

• Founders take the “just do it” approach and make decisions based on intuition and gut feelings

• Founders get too product-focused and just assume that people will buy their product

by Eric Ries in 2011

Why do startups fail?

The Lean Startup

= A better, faster way to

make startups successful

Lean Startup Principles1. Entrepreneurs are everywhere

2. Entrepreneurship is management

3. Validated learning

4. Build - Measure - Learn

5. Innovation accounting

Lean Startup & You1. Entrepreneurs are everywhere

2. Entrepreneurship is management

3. Validated learning

4. Build - Measure - Learn

5. Innovation accounting

Validated LearningApply the Scientific Method to business by conducting Experiments

1. Formulate a falsifiable Hypothesis

2. Test your hypothesis via Build - Measure - Learn

3. Analyze the results with Innovation Accounting

Build - Measure - Learn

What is a Minimum Viable Product?

• Enables learning as quickly as possible

• Least amount of effort and development time to validate your hypothesis

• Not necessarily the smallest product imaginableMVP

Let them eat cakeWhat the heck is minimum viable?

Let them eat cake

Not Minimum

minimum viable^

Let them eat cake

Not Viable

minimum viable^

Let them eat cake

Minimum & Viable

minimum viable^

Let them eat cake

Minimum & Viable

Innovation AccountingSets the following learning milestones

1. Establish a Baseline - Test riskiest assumptions first

2. Tune the Engine - Measure and tune what matters

3. Pivot or Persevere - Evaluate your level of success

Innovation AccountingMeasure progress with metrics that are

• Actionable

• Accessible

• Auditable

• but are not “Vanity Metrics”

Note: also not just Pirate Metrics (AARRR)

Running Lean

Practice trumps theory.

by Ash Maurya in 2011

Customers don’t care about your solution. They care about their problems.

Running Lean

= A better, faster process to make startups successful

Running Lean Meta-Principles1. Document your Plan A

2. Identify the riskiest parts of your plan

3. Systematically test your plan

Principles guide what you do. Tactics show you how.

Document Your Plan

Product Market

Identify Risk• Stage 1 :: Getting the Product Right :: Product Risk

• Stage 2 :: Building a Path to Customers :: Customer Risk

• Stage 3 :: Building a Viable Business :: Market Risk

Startup Stages

Focus on Validated Learning Focus on Growth

Experiment then Pivot Experiment then Optimize

ScaleProblem/Solution Fit Product/Market Fit

Stage 1 Stage 2 Stage 3

Do I have a problem worth solving?

Have I built something people want?

How do I accelerate growth?

Product Risk Customer Risk Market Risk

Understand Problem

Define Solution

Validate Qualitatively

Verify Quantitatively

Run Experiments

The Loop of Many Names

• Validated Learning Loop

• Customer Feedback Loop

• An Experiment

BuildLearn

Measure

and Test Your PlanUnderstand

ProblemDefine

SolutionValidate

QualitativelyVerify

Quantitatively

BL

M BL

M

BL

M BL

M

BL

M BL

M

BL

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Understand Problem

Define Solution

Validate Qualitatively

Verify Quantitatively

• Find Prospects • Problem Interview

• Build Demo • Solution Interview • Build MVP

• Build Dashboard • MVP Interview • Realize UVP • Validate Lifecycle

• Constrain Features • Measure Progress • Achieve Early Traction • Identify Engine of Growth • Scale

Problem/Solution Fit Product/Market Fit

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

12 Agile Principles continuous delivery of valuable software welcome changing requirements deliver working software frequently business and developers must work together motivated individuals face-to-face conversation Working software is the primary measure of progress. sustainable development continuous attention excellence Simplicity is essential self-organizing teams tune and adjusts team behavior

Layer Cake of Lean

Optimize the Whole Focus on Customers Eliminate Waste Energize Workers

Learn First Deliver Fast Build Quality In Keep Getting Better

Lean Principles

Validated Learning Build - Measure - Learn Innovation Accounting

Minimum Viable Product Pivot or Persevere Actionable Metrics Falsifiable Hypothesis

Lean Startup Experiment

Lean Canvas Problem/Solution Fit Product/Market FitRunning Lean Scale

Understand Problem Define Solution Validate Qualitatively Verify Quantitatively

Kanban Core Practices

Visualize WorkflowManage Flow

Make Policies ExplicitImplement Feedback Loops

Improve collaboratively, evolve experimentally Limit WIP

How can we leverage Lean to improve our process

and our products?

Feature Initiative Analysis Design Implementation Launch

Current* Process* This was the process as of January 2014, however it is currently in flux.

Problems I observed

1. Features/Products launched aren’t actually used by customers

2. Changes in priority and focus happen frequently without adequate explanation Product feels like they’re either too far ahead or behind development

3. Dev teams are often given the solution without an opportunity to explore other possibilities, stifling innovation and creativity

4. Teams find it difficult to adjust to new information once a project is in development

Lean & Me

BuildLearn

Measure

Ideas

ProductData

Learn - Build - Measure

Who’s On First?

What’s on Second!

One Process to Rule Them All

Pivot or Persevere

I Know’s on Third (Don’t)

^

Gotta Love Gannt

Live the loop

Menagerie of Products

Squirrel!

Squirrel!

Squirrel!

Wolf?

Cry Wolf

Pivot on a Dog

Quackery

Oh duck!

Fowl Play

Great Cats

Menagerie of Products

So What?1. Customer focus from problem exploration to solution

design = Useful, Usable and Desirable Products

2. Focus on validated learning and measuring success = Make prioritization decisions informed by data

3. Engineering involved earlier, before the solution is designed = Greater latitude to innovate

4. Smaller MVPs, less waste, faster cycle time = Adapt to change more quickly

Discovery Definition Develop Launch Learn

New* Process* This process is currently in flux.

Enterprise Kanban Product Development Phases

Understand Problem

Define Solution

Validate Qualitatively

Verify Quantitatively

Build Solution

Market to Customers

Validate Success

SelectIdeas

Verify Solution

So… How can we leverage Lean to

improve our development process?

Understand Problem

Define Solution

Validate Qualitatively

Verify Quantitatively