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Applying Lean Startup Principles to Agile Projects

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Synerzip
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The document describes a webinar on applying Lean Startup principles to agile projects. It discusses frameworks like Build-Measure-Learn loops and Minimum Viable Products that emphasize experimentation and customer feedback over comprehensive planning. Projects are broken into hypotheses-driven experiments and iterations called Experiment Test Iterations to quickly validate assumptions. The goal is learning what customers want rather than completing features, allowing teams to pivot as needed.

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www.synerzip.com Webinar Series 2015 Applying Lean Startup Principles to Agile Projects Mike Hall Three Beacons mike@threebeacons.com 214.783.3936 0
www.synerzip.com Webinar Series 2015 Lean Startup 1
www.synerzip.com Webinar Series 2015 2 Applicability It’s for everyone: startups, new product development, new features, etc.
www.synerzip.com Webinar Series 2015 3 Mantra The goal of any project is to figure out the right thing to build. “What if we found ourselves building something that nobody wanted? In that case, what did it matter if we did it on time and on budget?”
www.synerzip.com Webinar Series 2015 4 Thinking Question at the start of a typical project: • Can we build a solution for that problem? Lean Startup questions at the start: • Do consumers recognize they have a problem? • If there was a solution, would they buy it? • Would they buy it from us? • Can we build a solution for that problem? • Can we build a sustainable business around this product/service? Ask “Should it be built?” instead of “Can it be built?”
www.synerzip.com Webinar Series 2015 5 Framework • Adaptable framework • Based on scientific methods • A journey of “discovery” - Subject the vision to constant hypothesis testing - React to customer feedback - Bypass work that does not lead to learning - Adapt to what the data is telling you “Successful entrepreneurs had the foresight, ability, and tools to discover which part of their plans were working brilliantly and which were misguided, and adapt their strategies accordingly.
www.synerzip.com Webinar Series 2015 Lean Startup - Principles 6
www.synerzip.com Webinar Series 2015 7 Assumptions as Hypotheses • Identify your project/feature assumptions (continuously) • Reword them as hypotheses “The XYZ change will prove that customers want to ...” (value) “The ABC feature will increase new customers by at least 15%.” (growth) Avoid: • Acting as if assumptions are true and proceeding anyway! – Leaps of Faith • Taking statements for granted • Reports from anyone other than the customer
www.synerzip.com Webinar Series 2015 8 A Tale of Two Teams • What to build? • Passionate debates • Suits decide • Implement several features at a time • Celebrates any positive perception • Clear baseline metric • Hypothesis on how to improve metric • Experiments to test hypothesis • Empirical data from customer usage • Celebrates learning
www.synerzip.com Webinar Series 2015 9 Experiments • Think of your project as a set of small experiments • Break business plan down to its component parts – and test them • Define experiments to test each hypothesis • Results of the experiments guide decisions about product direction Experiments allow us to transition from guesses to knowledge. Case Study: Zappos
www.synerzip.com Webinar Series 2015 10 Validated Learning • The result of the experiments • Can be positive or negative changes • Empirical data from the customer • “Learn lessons early” rather than “build features and fix bugs” • Faster and more accurate than market forecasting and classical business planning The measure of an effective team is how much validated learning did we achieve (as opposed to how much did we build).
www.synerzip.com Webinar Series 2015 11 Small Batch Size • Allows us to identify quality problems sooner • Pull – each step pulls the parts needed from the previous step, Toyota JIT production • As soon as we formulate a hypothesis, run the experiment as quickly as possible using the smallest batch size to get the job done! “Large batch sizes can create a death spiral of re-doing work.”
www.synerzip.com Webinar Series 2015 12 Build – Measure - Learn the smallest batch possible qualitative and quantitative Decision! Minimize time through loop from the data
www.synerzip.com Webinar Series 2015 13 Minimum Viable Product
www.synerzip.com Webinar Series 2015 14 Minimum Viable Product • The resultant output of successive Build – Measure – Learn loops • Remove/Avoid any effort that does not lead to learning • Goal of MVP – test your hypotheses, achieve validated learning • Decision after learning: pivot/persevere/quit • Iterate toward launchable product “The only way to win is to learn faster than anyone else.”
www.synerzip.com Webinar Series 2015 15 Case Study: Dropbox • Very popular web-based file-sharing service • Initial MVP: a YouTube video • Targeted to early adopters • Beta waiting list went from 5,000 to 75,000 overnight • Company now worth over $1B
www.synerzip.com Webinar Series 2015 16 MVP Patterns • Concierge MVP – personalized service as a learning activity • Wizard of Oz MVP – behind the scenes humans doing the work • Case Study: Aardvark • Low-quality MVP • Case Study: Craigslist • Case Study: IMVU avatar teleportation • Smoke test - marketing materials • UI mockups • Etc.
www.synerzip.com Webinar Series 2015 17 Pivot, Persevere, or Quit • Based on the validated learnings of an MVP, decide! • Pivot – structured course correction designed to test new hypotheses • Persevere – continue on with next set of hypotheses • Quit – cancel the project and move on to the next one “There is no bigger destroyer of creative potential than the misguided decision to persevere.”
www.synerzip.com Webinar Series 2015 18 Case Study: Potbelly Sandwiches • Started out as an antique store • Began selling sandwiches to drive traffic to the stores in the hopes of selling more antiques • Lines formed out the door • Pivoted to a sandwich store • Today over 280 sandwich stores nationwide
www.synerzip.com Webinar Series 2015 19 Pivot Types • Zoom-in pivot – refocus product on what was previously considered one feature • Zoom-out pivot – single feature is inadequate, so add features • Customer segment pivot • Customer need pivot (Potbelly) • Platform pivot • Business architecture pivot • Value capture pivot • Engine of growth pivot • Channel pivot • Technology pivot Pivots take courage!
www.synerzip.com Webinar Series 2015 20 Others • Innovation Accounting • Engine of Growth • Adaptive Organization
www.synerzip.com Webinar Series 2015 Application to Agile Projects 21
www.synerzip.com Webinar Series 2015 22 Case Study: NAV-API • Navigation platform supports 3rd-party apps integration • Goal is to accurately measure usage analytics • Measurement messages are - Start/Stop driving - Route to destination - Travel guide viewing, etc. • Approach 1: downloadable SDK integrated into apps - Caches measurements, sends every 5 minutes to server - Re-issue app when SDK changes, re-certify - SDK execution can crash 3rd-party app • New product: web service to receive measurement messages - Defined RESTful API called NAV-API
www.synerzip.com Webinar Series 2015 23 Get Started: Hypotheses-Driven Vision • Develop a classic vision board • List assumptions • Continue to identify assumptions as you go • Translate implicit assumptions into explicit testable hypotheses • List hypotheses
www.synerzip.com Webinar Series 2015 24 NAV-API Vision Board Target Group Needs Product Value For clients who have a need for capturing usage analytics on their connected applications, Navigation API (NAV-API) is a cloud-based service that provides a simple easy-to-understand way of reporting measurements. Unlike classic embedded SDK approaches, the NAV-API will provide a direct reporting experience based on web service calls. 3rd-party app customers • Yelp • Trip Advisor • TripIt • Travefy • AAA • Tripomatic • Hertz • Avis • TouristEye • TripCase • WorldMate • Ease of measurement reporting • Use of familiar programmatic approach • Less software development • No need to download/integrate SDK • One solution for all digital • Cloud-based • Transparent evolution • Linear scaling as demand grows • Fault tolerant • Increase revenues • Satisfy pent-up demand • Increase digital footprint • 1-stop-shop Assumptions Hypotheses • Customers will prefer NAV-API over the embedded SDK • NAV-API will make it easier to certify apps • NAV-API can handle large amount of users • NAV-API will need a super-fast DB • An early release to friendly customers will provide good feedback • > 80% of all customers will prefer NAV-API • NAV-API can be self-certified by customers • NAV-API can handle 50K simultaneous sessions • Redis is the best DB for NAV-API • An initial release can be built with limited (but valuable) functionality for early adopters Vision Statement
www.synerzip.com Webinar Series 2015 25 Get Empathetic: Knowledge Broker Personas • A special form of persona • But emphasizes the knowledge sharing that each can bring • Customer Archetype – humanizes the proposed target user Knowledge Sharing • Can explain why certain features are more important • Can describe his previous SUVs and what he liked/disliked • Will give an opinion on our new Sync+ system • We can determine how likely he will upgrade to a full-size SUV in the future
www.synerzip.com Webinar Series 2015 26 Get Organized: Learning Maps • Create a story map on a wall • But organize and prioritize it by Hypothesis from left to right • Which will deliver the most learning? • Which learnings are most crucial? • Which learnings reduce risk? • Which are most crucial in answering “Are we building the right product?” • For each hypothesis, name the user stories and/or work items • Prioritize the user stories top to bottom
www.synerzip.com Webinar Series 2015 27 NAV-API Learning Map Hypotheses Experiments: Stories, Work Items
www.synerzip.com Webinar Series 2015 28 Tee It Up: Experiment Backlogs • Similar to Scrum product backlog • But is learning-based prioritization • List of all experiments 1..n • Stories, work items, research, etc. • Tagged with Hypothesis name/description
www.synerzip.com Webinar Series 2015 29 NAV-API Experiment Backlog Project Key Summary Issue Type Status Resolution Created Updated Description Cloud API NMAPI-76 API Issues Epic Open Unresolved 3/13/2015 19:09 3/19/2015 14:24 Hypothesis: NAV-API is resilient enough to appropriately handle session id and data value errors. NAV API NAVAPI-4 Start session Story Open Unresolved 3/13/2015 14:17 3/23/2015 9:00 As an application, I want to start a session, so that I can begin reporting metrics to the downsteam systems. • When I request a session, I expect that my session is started by NAV-API. • When I request a session, I expect to receive a successful return code from NAV-API. • When I request a session, I expect to receive a unique session id that I can use in subsequent NAV- API calls. I also expect to receive an opt-out URL that I can display in my Privacy page. • When I request a session and NAV-API is unable to start my session, I expect to receive an error code that indicates the reason. • When I request a session and my device/application is opted-out, I expect to receive an error code that indicates opted-out as the reason. • When I request a session, I expect NAV-API to read in my config file from the Config system. The Config file contains variable name mappings that allow me to use my own defined variables instead of the defaults. NAV API NAVAPI-5 Start drive Story Open Unresolved 3/13/2015 14:17 3/19/2015 16:09 As an application, I want to signal start drive, so that I can begin collecting information about the trip. Acceptance Criteria • When I start driving. I expect to receive a successful return code from NAV-API • When there is an error in the data transmission to NAV-API, I expect to receive an error response code. NAV API NAVAPI-8 Stop drive Story Open Unresolved 3/13/2015 14:18 3/23/2015 8:59 As an application, I want to report when I stop driving, so that I can complete information regarding a trip. • When I am stop driving, I expect NAV-API to accept the data as defined in the API such as event, UTC time, and type. • When I am stop driving, I expect NAV-API to accept the data as defined in the API such as event, offset time, and type. • When I stop driving, I expect an OK response code. • When there is an error in the data transmission to NAV-API, I expect an error response code. NAV API NAVAPI- 83 Route to destination Story Open Unresolved 3/16/2015 10:25 3/20/2015 12:14 As an application, I want to report when a route destination is in progress, so that I can complete information regarding a routed trip. • When I am routing, I expect NAV-API to accept the data as defined in the API such as event, UTC time, and type. • When I am routing, I expect NAV-API to accept the data as defined in the API such as event, offset time, and type. • When I start routing, I expect an OK response code. • When there is an error in the data transmission to NAV-API, I expect an error response code. NAV API NAVAPI- 16 View travel guide Story Open Unresolved 3/13/2015 14:20 3/23/2015 9:02 As an application, I want to report when a travel guide is viewed, so that I can complete information regarding a view session. • When I am view a travel guide, I expect NAV-API to accept the data as defined in the API such as event, UTC time, and type. • When I am view a travel guide, I expect NAV-API to accept the data as defined in the API such as event, offset time, and type. • When I start viewing, I expect an OK response code. • When there is an error in the data transmission to NAV-API, I expect an error response code. NAV API NAVAPI- 15 Stop session Story Open Unresolved 3/13/2015 14:19 3/23/2015 9:52 As an application, I want to stop a session, so that I can close out metrics to the downsteam systems. • When I stop a session, I expect that my session is stopped by NAV-API. • When I stop a session, I expect to receive a successful return code from NAV-API. • When I stop a session and NAV-API is unable to stp my session, I expect to receive an error code that indicates the reason. • When I stop a session and my device/application is opted-out, I expect to receive an error code that indicates opted-out as the reason. Epics + User Stories (Digital Engineering) Displaying 86 issues at 14/Apr/15 1:15 PM.
www.synerzip.com Webinar Series 2015 30 Get Focused: Minimum Learning Product (MLP) • Similar to MVP, but much smaller • Learning-based, not viable product- based • Smallest chunk of the Learning Map that can be developed to learn something important • Real or mock form • Goal is to get just enough learnings - Then pivot, persevere, or quit • Choosing the MLP replaces classic Scrum sprint planning - Break into tasks if it helps
www.synerzip.com Webinar Series 2015 31 NAV-API Minimum Learning Product MLP
www.synerzip.com Webinar Series 2015 32 Experiment Test Iteration • Experiment Test Iteration (ETI) • Similar to Scrum sprint but variable time length - Depends on size of experiment - Get through Build/Measure/Learn as quickly as possible! Scrum: fixed iteration length ETI: variable iteration length ETI 1 3 days ETI 2 5 days ETI 3 9 days ETI 4 17 days ETI 5 6 days ETI 6 7 days
www.synerzip.com Webinar Series 2015 33 Build It: ETI • Build out the MLP • Measure progress based on validated learning • Use modified storyboard showing Validated column Story To Do In Work Done Validated
www.synerzip.com Webinar Series 2015 34 Get More Data: Learning Results Period • Obtaining results from knowledge brokers • Sometimes the validation takes longer than the ETI • Run this in parallel with the next ETI - Defer pivot/persevere/quit decision until this data is in ETI 1 3 days ETI 2 5 days ETI 3 9 days ETI 4 17 days ETI 5 6 days ETI 6 7 days ETI3 Learning Results Period Pivot/Persevere/Quit
www.synerzip.com Webinar Series 2015 35 Demo It: ETI Review • Dev team demos their progress • Discuss learnings obtained from the Learning Results Period • Experiment findings are discussed with stakeholders • Decision: pivot, persevere, or quit
www.synerzip.com Webinar Series 2015 36 Think About It: ETI Retrospective • Team discusses - What went well, what did not go well - How to get better • A spirit of “continuous improvement” • Plus: - How is the team feeling about the assumptions? - Are there any not identified previously?
www.synerzip.com Webinar Series 2015 37 Rinse & Repeat: MLPs • Build series of MLPs to reach final launchable product • Use innovation accounting to “tune the growth engine” • Be courageous in pivot/persevere/quit decisions
www.synerzip.com Webinar Series 2015 38 Team Dynamics • Scrum team becomes a small “innovation factory” - Responsible for code and/or artifacts that prove/disprove a hypothesis - Continuous innovation • Practicing the art of “genchi genbutsu” - “Go and see” - The only way to truly understand the requirements is to get out of the office and spend time with the customer - Gemba – the real place - Don’t rely on information from other sources
www.synerzip.com Webinar Series 2015 39 Gemba Walk • Gemba Walk - Go see the actual process - Purposeful attempt to learn what is really going on - Direct customer interaction - Ask questions - Show respect - Learn
www.synerzip.com Webinar Series 2015 40 Team Dynamics (cont) • ScrumMaster becomes “shusa” • Chief engineer responsible for guiding the product to success • Guides team on experiments and MLPs to product
www.synerzip.com Webinar Series 2015 Conclusion 41
www.synerzip.com Webinar Series 2015 42 Conclusion • Lean Startup principles can and should be used in Agile projects - To help insure we build the right thing • Approximately 10 techniques presented, but there are probably even more • This could be the next major evolution of Agile! “If we stopped wasting people’s time, what would they do with it? We have no real concept of what is possible.”
www.synerzip.com Webinar Series 2015 43 Introducing: Gemba • Gemba: a validated learning Agile method Gemba Scrum Lean Startup Lean
www.synerzip.com Webinar Series 2015 44 Gemba Manifesto We value • Validated learning over reasonable assumptions • Data-driven decisions over plausible-sounding arguments • Building minimum learning products over additional features • The courage to build the right thing over something that might work
www.synerzip.com Webinar Series 2015 Three Beacons 45 © Three Beacons LLC, 2015 Agile Training Scrum team training Lean Startup training Intro to Agile User Stories Extreme Programming Agile Consulting Onsite Skype-based
www.synerzip.com Webinar Series 2015 THE END Mike Hall Three Beacons mike@threebeacons.com 214.783.3936 46
www.synerzip.com Webinar Series 2015 Backups 47
www.synerzip.com Webinar Series 2015 48 Innovation Accounting • Measure the progress of innovation towards validated learning – instead of burn rate or $ • Three steps • Use MVP to establish real data • Tune the engine from baseline towards ideal • Pivot, persevere, or quit • Use actionable metrics – clear cause&effect • Split-test of a feature caused 20% increase in sales • Per-customer metrics • Cohort metrics – groups of customers • Avoid vanity metrics • Number of hits to a website • Action to take is not obvious “If you are building the wrong thing, optimizing the product or its marketing will not yield significant results.”
www.synerzip.com Webinar Series 2015 49 Engine of Growth • Use a small set of actionable metrics • Customer acquisition cost • Activations • Retention • Revenue • Referrals • Consider viral coefficient • How many friends will each customer bring? • Case Study: Hotmail • “Tune” the engine every time learning occurs
www.synerzip.com Webinar Series 2015 50 Adaptive Organization • Auto-adjust process and performance based on current learnings • Andon cord – anyone can stop the production line! • Slow down – invest in preventing issues • Ask “Why?” 5 times to get to root cause Avoid • Handoffs and approvals • Making decisions on plausible-sounding arguments • Low quality products • Defects
www.synerzip.com Webinar Series 2015 •5184 www.synerzip.com Hemant Elhence hemant@synerzip.com 469.374.0500 51
www.synerzip.com Webinar Series 2015 Synerzip in a Nutshell  Software product development partner for small/mid-sized technology companies • Exclusive focus on small/mid-sized technology companies, typically venture- backed companies in growth phase • By definition, all Synerzip work is the IP of its respective clients • Deep experience in full SDLC – design, dev, QA/testing, deployment  Dedicated team of high caliber software professionals for each client • Seamlessly extends client’s local team offering full transparency • Stable teams with very low turn-over • NOT just “staff augmentation, but provide full management support  Actually reduces risk of development/delivery • Experienced team – uses appropriate level of engineering discipline • Practices Agile development – responsive yet disciplined  Reduces cost – dual-site team, 50% cost advantage  Offers long-term flexibility – allows (facilitates) taking offshore team captive – aka “BOT” option 52
www.synerzip.com Webinar Series 2015 Synerzip Clients 53
www.synerzip.com Webinar Series 2015 Join Us In Person Agile Texas 2015 Tour Presented by Hemant Elhence & Vinayak Joglekar 54
www.synerzip.com Webinar Series 2015 Next Webinar Technical Topic: From Hadoop to Spark Complimentary Webinar: Wednesday, August 19, 2015 @ Noon CST Presented by: Mark Kerzner Co-Founder, Elephant Scale 55
www.synerzip.com Webinar Series 2015 Hemant Elhence hemant@synerzip.com 469.374.0500 Connect with Synerzip @Synerzip_Agile linkedin.com/company/synerzip facebook.com/Synerzip 56

More Related Content

Applying Lean Startup Principles to Agile Projects

  • 1. www.synerzip.com Webinar Series 2015 Applying Lean Startup Principles to Agile Projects Mike Hall Three Beacons mike@threebeacons.com 214.783.3936 0
  • 3. www.synerzip.com Webinar Series 2015 2 Applicability It’s for everyone: startups, new product development, new features, etc.
  • 4. www.synerzip.com Webinar Series 2015 3 Mantra The goal of any project is to figure out the right thing to build. “What if we found ourselves building something that nobody wanted? In that case, what did it matter if we did it on time and on budget?”
  • 5. www.synerzip.com Webinar Series 2015 4 Thinking Question at the start of a typical project: • Can we build a solution for that problem? Lean Startup questions at the start: • Do consumers recognize they have a problem? • If there was a solution, would they buy it? • Would they buy it from us? • Can we build a solution for that problem? • Can we build a sustainable business around this product/service? Ask “Should it be built?” instead of “Can it be built?”
  • 6. www.synerzip.com Webinar Series 2015 5 Framework • Adaptable framework • Based on scientific methods • A journey of “discovery” - Subject the vision to constant hypothesis testing - React to customer feedback - Bypass work that does not lead to learning - Adapt to what the data is telling you “Successful entrepreneurs had the foresight, ability, and tools to discover which part of their plans were working brilliantly and which were misguided, and adapt their strategies accordingly.
  • 8. www.synerzip.com Webinar Series 2015 7 Assumptions as Hypotheses • Identify your project/feature assumptions (continuously) • Reword them as hypotheses “The XYZ change will prove that customers want to ...” (value) “The ABC feature will increase new customers by at least 15%.” (growth) Avoid: • Acting as if assumptions are true and proceeding anyway! – Leaps of Faith • Taking statements for granted • Reports from anyone other than the customer
  • 9. www.synerzip.com Webinar Series 2015 8 A Tale of Two Teams • What to build? • Passionate debates • Suits decide • Implement several features at a time • Celebrates any positive perception • Clear baseline metric • Hypothesis on how to improve metric • Experiments to test hypothesis • Empirical data from customer usage • Celebrates learning
  • 10. www.synerzip.com Webinar Series 2015 9 Experiments • Think of your project as a set of small experiments • Break business plan down to its component parts – and test them • Define experiments to test each hypothesis • Results of the experiments guide decisions about product direction Experiments allow us to transition from guesses to knowledge. Case Study: Zappos
  • 11. www.synerzip.com Webinar Series 2015 10 Validated Learning • The result of the experiments • Can be positive or negative changes • Empirical data from the customer • “Learn lessons early” rather than “build features and fix bugs” • Faster and more accurate than market forecasting and classical business planning The measure of an effective team is how much validated learning did we achieve (as opposed to how much did we build).
  • 12. www.synerzip.com Webinar Series 2015 11 Small Batch Size • Allows us to identify quality problems sooner • Pull – each step pulls the parts needed from the previous step, Toyota JIT production • As soon as we formulate a hypothesis, run the experiment as quickly as possible using the smallest batch size to get the job done! “Large batch sizes can create a death spiral of re-doing work.”
  • 13. www.synerzip.com Webinar Series 2015 12 Build – Measure - Learn the smallest batch possible qualitative and quantitative Decision! Minimize time through loop from the data
  • 15. www.synerzip.com Webinar Series 2015 14 Minimum Viable Product • The resultant output of successive Build – Measure – Learn loops • Remove/Avoid any effort that does not lead to learning • Goal of MVP – test your hypotheses, achieve validated learning • Decision after learning: pivot/persevere/quit • Iterate toward launchable product “The only way to win is to learn faster than anyone else.”
  • 16. www.synerzip.com Webinar Series 2015 15 Case Study: Dropbox • Very popular web-based file-sharing service • Initial MVP: a YouTube video • Targeted to early adopters • Beta waiting list went from 5,000 to 75,000 overnight • Company now worth over $1B
  • 17. www.synerzip.com Webinar Series 2015 16 MVP Patterns • Concierge MVP – personalized service as a learning activity • Wizard of Oz MVP – behind the scenes humans doing the work • Case Study: Aardvark • Low-quality MVP • Case Study: Craigslist • Case Study: IMVU avatar teleportation • Smoke test - marketing materials • UI mockups • Etc.
  • 18. www.synerzip.com Webinar Series 2015 17 Pivot, Persevere, or Quit • Based on the validated learnings of an MVP, decide! • Pivot – structured course correction designed to test new hypotheses • Persevere – continue on with next set of hypotheses • Quit – cancel the project and move on to the next one “There is no bigger destroyer of creative potential than the misguided decision to persevere.”
  • 19. www.synerzip.com Webinar Series 2015 18 Case Study: Potbelly Sandwiches • Started out as an antique store • Began selling sandwiches to drive traffic to the stores in the hopes of selling more antiques • Lines formed out the door • Pivoted to a sandwich store • Today over 280 sandwich stores nationwide
  • 20. www.synerzip.com Webinar Series 2015 19 Pivot Types • Zoom-in pivot – refocus product on what was previously considered one feature • Zoom-out pivot – single feature is inadequate, so add features • Customer segment pivot • Customer need pivot (Potbelly) • Platform pivot • Business architecture pivot • Value capture pivot • Engine of growth pivot • Channel pivot • Technology pivot Pivots take courage!
  • 21. www.synerzip.com Webinar Series 2015 20 Others • Innovation Accounting • Engine of Growth • Adaptive Organization
  • 23. www.synerzip.com Webinar Series 2015 22 Case Study: NAV-API • Navigation platform supports 3rd-party apps integration • Goal is to accurately measure usage analytics • Measurement messages are - Start/Stop driving - Route to destination - Travel guide viewing, etc. • Approach 1: downloadable SDK integrated into apps - Caches measurements, sends every 5 minutes to server - Re-issue app when SDK changes, re-certify - SDK execution can crash 3rd-party app • New product: web service to receive measurement messages - Defined RESTful API called NAV-API
  • 24. www.synerzip.com Webinar Series 2015 23 Get Started: Hypotheses-Driven Vision • Develop a classic vision board • List assumptions • Continue to identify assumptions as you go • Translate implicit assumptions into explicit testable hypotheses • List hypotheses
  • 25. www.synerzip.com Webinar Series 2015 24 NAV-API Vision Board Target Group Needs Product Value For clients who have a need for capturing usage analytics on their connected applications, Navigation API (NAV-API) is a cloud-based service that provides a simple easy-to-understand way of reporting measurements. Unlike classic embedded SDK approaches, the NAV-API will provide a direct reporting experience based on web service calls. 3rd-party app customers • Yelp • Trip Advisor • TripIt • Travefy • AAA • Tripomatic • Hertz • Avis • TouristEye • TripCase • WorldMate • Ease of measurement reporting • Use of familiar programmatic approach • Less software development • No need to download/integrate SDK • One solution for all digital • Cloud-based • Transparent evolution • Linear scaling as demand grows • Fault tolerant • Increase revenues • Satisfy pent-up demand • Increase digital footprint • 1-stop-shop Assumptions Hypotheses • Customers will prefer NAV-API over the embedded SDK • NAV-API will make it easier to certify apps • NAV-API can handle large amount of users • NAV-API will need a super-fast DB • An early release to friendly customers will provide good feedback • > 80% of all customers will prefer NAV-API • NAV-API can be self-certified by customers • NAV-API can handle 50K simultaneous sessions • Redis is the best DB for NAV-API • An initial release can be built with limited (but valuable) functionality for early adopters Vision Statement
  • 26. www.synerzip.com Webinar Series 2015 25 Get Empathetic: Knowledge Broker Personas • A special form of persona • But emphasizes the knowledge sharing that each can bring • Customer Archetype – humanizes the proposed target user Knowledge Sharing • Can explain why certain features are more important • Can describe his previous SUVs and what he liked/disliked • Will give an opinion on our new Sync+ system • We can determine how likely he will upgrade to a full-size SUV in the future
  • 27. www.synerzip.com Webinar Series 2015 26 Get Organized: Learning Maps • Create a story map on a wall • But organize and prioritize it by Hypothesis from left to right • Which will deliver the most learning? • Which learnings are most crucial? • Which learnings reduce risk? • Which are most crucial in answering “Are we building the right product?” • For each hypothesis, name the user stories and/or work items • Prioritize the user stories top to bottom
  • 28. www.synerzip.com Webinar Series 2015 27 NAV-API Learning Map Hypotheses Experiments: Stories, Work Items
  • 29. www.synerzip.com Webinar Series 2015 28 Tee It Up: Experiment Backlogs • Similar to Scrum product backlog • But is learning-based prioritization • List of all experiments 1..n • Stories, work items, research, etc. • Tagged with Hypothesis name/description
  • 30. www.synerzip.com Webinar Series 2015 29 NAV-API Experiment Backlog Project Key Summary Issue Type Status Resolution Created Updated Description Cloud API NMAPI-76 API Issues Epic Open Unresolved 3/13/2015 19:09 3/19/2015 14:24 Hypothesis: NAV-API is resilient enough to appropriately handle session id and data value errors. NAV API NAVAPI-4 Start session Story Open Unresolved 3/13/2015 14:17 3/23/2015 9:00 As an application, I want to start a session, so that I can begin reporting metrics to the downsteam systems. • When I request a session, I expect that my session is started by NAV-API. • When I request a session, I expect to receive a successful return code from NAV-API. • When I request a session, I expect to receive a unique session id that I can use in subsequent NAV- API calls. I also expect to receive an opt-out URL that I can display in my Privacy page. • When I request a session and NAV-API is unable to start my session, I expect to receive an error code that indicates the reason. • When I request a session and my device/application is opted-out, I expect to receive an error code that indicates opted-out as the reason. • When I request a session, I expect NAV-API to read in my config file from the Config system. The Config file contains variable name mappings that allow me to use my own defined variables instead of the defaults. NAV API NAVAPI-5 Start drive Story Open Unresolved 3/13/2015 14:17 3/19/2015 16:09 As an application, I want to signal start drive, so that I can begin collecting information about the trip. Acceptance Criteria • When I start driving. I expect to receive a successful return code from NAV-API • When there is an error in the data transmission to NAV-API, I expect to receive an error response code. NAV API NAVAPI-8 Stop drive Story Open Unresolved 3/13/2015 14:18 3/23/2015 8:59 As an application, I want to report when I stop driving, so that I can complete information regarding a trip. • When I am stop driving, I expect NAV-API to accept the data as defined in the API such as event, UTC time, and type. • When I am stop driving, I expect NAV-API to accept the data as defined in the API such as event, offset time, and type. • When I stop driving, I expect an OK response code. • When there is an error in the data transmission to NAV-API, I expect an error response code. NAV API NAVAPI- 83 Route to destination Story Open Unresolved 3/16/2015 10:25 3/20/2015 12:14 As an application, I want to report when a route destination is in progress, so that I can complete information regarding a routed trip. • When I am routing, I expect NAV-API to accept the data as defined in the API such as event, UTC time, and type. • When I am routing, I expect NAV-API to accept the data as defined in the API such as event, offset time, and type. • When I start routing, I expect an OK response code. • When there is an error in the data transmission to NAV-API, I expect an error response code. NAV API NAVAPI- 16 View travel guide Story Open Unresolved 3/13/2015 14:20 3/23/2015 9:02 As an application, I want to report when a travel guide is viewed, so that I can complete information regarding a view session. • When I am view a travel guide, I expect NAV-API to accept the data as defined in the API such as event, UTC time, and type. • When I am view a travel guide, I expect NAV-API to accept the data as defined in the API such as event, offset time, and type. • When I start viewing, I expect an OK response code. • When there is an error in the data transmission to NAV-API, I expect an error response code. NAV API NAVAPI- 15 Stop session Story Open Unresolved 3/13/2015 14:19 3/23/2015 9:52 As an application, I want to stop a session, so that I can close out metrics to the downsteam systems. • When I stop a session, I expect that my session is stopped by NAV-API. • When I stop a session, I expect to receive a successful return code from NAV-API. • When I stop a session and NAV-API is unable to stp my session, I expect to receive an error code that indicates the reason. • When I stop a session and my device/application is opted-out, I expect to receive an error code that indicates opted-out as the reason. Epics + User Stories (Digital Engineering) Displaying 86 issues at 14/Apr/15 1:15 PM.
  • 31. www.synerzip.com Webinar Series 2015 30 Get Focused: Minimum Learning Product (MLP) • Similar to MVP, but much smaller • Learning-based, not viable product- based • Smallest chunk of the Learning Map that can be developed to learn something important • Real or mock form • Goal is to get just enough learnings - Then pivot, persevere, or quit • Choosing the MLP replaces classic Scrum sprint planning - Break into tasks if it helps
  • 32. www.synerzip.com Webinar Series 2015 31 NAV-API Minimum Learning Product MLP
  • 33. www.synerzip.com Webinar Series 2015 32 Experiment Test Iteration • Experiment Test Iteration (ETI) • Similar to Scrum sprint but variable time length - Depends on size of experiment - Get through Build/Measure/Learn as quickly as possible! Scrum: fixed iteration length ETI: variable iteration length ETI 1 3 days ETI 2 5 days ETI 3 9 days ETI 4 17 days ETI 5 6 days ETI 6 7 days
  • 34. www.synerzip.com Webinar Series 2015 33 Build It: ETI • Build out the MLP • Measure progress based on validated learning • Use modified storyboard showing Validated column Story To Do In Work Done Validated
  • 35. www.synerzip.com Webinar Series 2015 34 Get More Data: Learning Results Period • Obtaining results from knowledge brokers • Sometimes the validation takes longer than the ETI • Run this in parallel with the next ETI - Defer pivot/persevere/quit decision until this data is in ETI 1 3 days ETI 2 5 days ETI 3 9 days ETI 4 17 days ETI 5 6 days ETI 6 7 days ETI3 Learning Results Period Pivot/Persevere/Quit
  • 36. www.synerzip.com Webinar Series 2015 35 Demo It: ETI Review • Dev team demos their progress • Discuss learnings obtained from the Learning Results Period • Experiment findings are discussed with stakeholders • Decision: pivot, persevere, or quit
  • 37. www.synerzip.com Webinar Series 2015 36 Think About It: ETI Retrospective • Team discusses - What went well, what did not go well - How to get better • A spirit of “continuous improvement” • Plus: - How is the team feeling about the assumptions? - Are there any not identified previously?
  • 38. www.synerzip.com Webinar Series 2015 37 Rinse & Repeat: MLPs • Build series of MLPs to reach final launchable product • Use innovation accounting to “tune the growth engine” • Be courageous in pivot/persevere/quit decisions
  • 39. www.synerzip.com Webinar Series 2015 38 Team Dynamics • Scrum team becomes a small “innovation factory” - Responsible for code and/or artifacts that prove/disprove a hypothesis - Continuous innovation • Practicing the art of “genchi genbutsu” - “Go and see” - The only way to truly understand the requirements is to get out of the office and spend time with the customer - Gemba – the real place - Don’t rely on information from other sources
  • 40. www.synerzip.com Webinar Series 2015 39 Gemba Walk • Gemba Walk - Go see the actual process - Purposeful attempt to learn what is really going on - Direct customer interaction - Ask questions - Show respect - Learn
  • 41. www.synerzip.com Webinar Series 2015 40 Team Dynamics (cont) • ScrumMaster becomes “shusa” • Chief engineer responsible for guiding the product to success • Guides team on experiments and MLPs to product
  • 43. www.synerzip.com Webinar Series 2015 42 Conclusion • Lean Startup principles can and should be used in Agile projects - To help insure we build the right thing • Approximately 10 techniques presented, but there are probably even more • This could be the next major evolution of Agile! “If we stopped wasting people’s time, what would they do with it? We have no real concept of what is possible.”
  • 44. www.synerzip.com Webinar Series 2015 43 Introducing: Gemba • Gemba: a validated learning Agile method Gemba Scrum Lean Startup Lean
  • 45. www.synerzip.com Webinar Series 2015 44 Gemba Manifesto We value • Validated learning over reasonable assumptions • Data-driven decisions over plausible-sounding arguments • Building minimum learning products over additional features • The courage to build the right thing over something that might work
  • 46. www.synerzip.com Webinar Series 2015 Three Beacons 45 © Three Beacons LLC, 2015 Agile Training Scrum team training Lean Startup training Intro to Agile User Stories Extreme Programming Agile Consulting Onsite Skype-based
  • 47. www.synerzip.com Webinar Series 2015 THE END Mike Hall Three Beacons mike@threebeacons.com 214.783.3936 46
  • 49. www.synerzip.com Webinar Series 2015 48 Innovation Accounting • Measure the progress of innovation towards validated learning – instead of burn rate or $ • Three steps • Use MVP to establish real data • Tune the engine from baseline towards ideal • Pivot, persevere, or quit • Use actionable metrics – clear cause&effect • Split-test of a feature caused 20% increase in sales • Per-customer metrics • Cohort metrics – groups of customers • Avoid vanity metrics • Number of hits to a website • Action to take is not obvious “If you are building the wrong thing, optimizing the product or its marketing will not yield significant results.”
  • 50. www.synerzip.com Webinar Series 2015 49 Engine of Growth • Use a small set of actionable metrics • Customer acquisition cost • Activations • Retention • Revenue • Referrals • Consider viral coefficient • How many friends will each customer bring? • Case Study: Hotmail • “Tune” the engine every time learning occurs
  • 51. www.synerzip.com Webinar Series 2015 50 Adaptive Organization • Auto-adjust process and performance based on current learnings • Andon cord – anyone can stop the production line! • Slow down – invest in preventing issues • Ask “Why?” 5 times to get to root cause Avoid • Handoffs and approvals • Making decisions on plausible-sounding arguments • Low quality products • Defects
  • 52. www.synerzip.com Webinar Series 2015 •5184 www.synerzip.com Hemant Elhence hemant@synerzip.com 469.374.0500 51
  • 53. www.synerzip.com Webinar Series 2015 Synerzip in a Nutshell  Software product development partner for small/mid-sized technology companies • Exclusive focus on small/mid-sized technology companies, typically venture- backed companies in growth phase • By definition, all Synerzip work is the IP of its respective clients • Deep experience in full SDLC – design, dev, QA/testing, deployment  Dedicated team of high caliber software professionals for each client • Seamlessly extends client’s local team offering full transparency • Stable teams with very low turn-over • NOT just “staff augmentation, but provide full management support  Actually reduces risk of development/delivery • Experienced team – uses appropriate level of engineering discipline • Practices Agile development – responsive yet disciplined  Reduces cost – dual-site team, 50% cost advantage  Offers long-term flexibility – allows (facilitates) taking offshore team captive – aka “BOT” option 52
  • 55. www.synerzip.com Webinar Series 2015 Join Us In Person Agile Texas 2015 Tour Presented by Hemant Elhence & Vinayak Joglekar 54
  • 56. www.synerzip.com Webinar Series 2015 Next Webinar Technical Topic: From Hadoop to Spark Complimentary Webinar: Wednesday, August 19, 2015 @ Noon CST Presented by: Mark Kerzner Co-Founder, Elephant Scale 55
  • 57. www.synerzip.com Webinar Series 2015 Hemant Elhence hemant@synerzip.com 469.374.0500 Connect with Synerzip @Synerzip_Agile linkedin.com/company/synerzip facebook.com/Synerzip 56