Lean Startup: Experiment-Driven Product Development

Transcription

1 Lean Startup: Experiment-Driven Product Development Mike Hall Improving

2 Money Is No Object? Operations Platform for Data Communication System (DCS) CT2-Plus wireless systems CEMAPS cellular performance system 2

3 Lean Startup 3

4 Applicability It s for everyone: startups, new product development, new features, etc. 4

5 Mantra Look carefully at this picture what is wrong? 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? The goal of any project is to figure out the right thing to build. 5

6 Principles 1. Start with your project/feature assumptions Reword these as hypotheses Continuously! Begin with a clear hypothesis that makes predictions about what is supposed to happen. 6

7 Principles 2. Build-Measure-Learn: Short dev cycles of validated learning Build experiments that will test your assumption hypotheses - Experiments are your stories - Prioritize based on? Measure results Learn what do the results tell us? The measure of an effective team is how much validated learning did we achieve (as opposed to how much did we build). 7

8 Principles 3. Adjust project direction based on BML validated learnings Pivot or Persevere (or Quit) PIVOT PERSEVERE QUIT There is no bigger destroyer of creative potential than the misguided decision to persevere. 8

9 Principles (others) 4. Small batch size 5. Minimum viable (learning) product 9

10 Principles (others) 6. Engine of growth 7. Adaptive organization 8. Innovation accounting 10

11 Application to Agile Projects 11

12 DCAPI Vision Board Vision Statement For clients who have a need for capturing census-based usage analytics on their connected devices/applications, Data Collection API (DCAPI) is a cloud-based service that provides a simple easy-to-understand way of reporting measurements. Unlike classic embedded SDK approaches, the DCAPI will provide a direct reporting experience based on web service calls. Target Group Needs Product Value Digital customers CBS Interactive MobiTV A&E Apps Crown Media Univision Apps Pandora Viacom Fox News DirecTV NBCU Apps AT&T JW Player Yelp Roku Xbox Connected TVs PlayStation Ease of measurement reporting Use of familiar programmatic approach Less software development No need to download/integrate SDK Assumptions Customers will prefer DCAPI over the embedded SDK DCAPI will make it easier to certify apps One solution for all digital Cloud-based Transparent evolution Linear scaling as demand grows DCAPI can handle a large amount of users DCAPI will need a super-fast DB An early release to friendly customers will provide good feedback Fault tolerant Hypotheses Increase revenues Satisfy pent-up demand Increase digital footprint 1-stop-shop > 80% of all customers will prefer DCAPI DCAPI can be self-certified by customers DCAPI can handle 50K simultaneous sessions Redis is the best DB for DCAPI An initial release can be built with limited (but valuable) functionality for early adopters 12

13 DCAPI Learning Map Hypotheses Experiments: Stories, Work Items 13

14 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 14

15 Minimum Learning Product (MLP) Similar to MVP, but typically smaller Learning-based more than product-based Choosing the MLP replaces classic Scrum sprint planning MLP MLP MLP 15

16 DCAPI Learning Map MLP 1 16

17 Experiment Test Iteration (ETI) 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 MLP MLP MLP MLP MLP MLP 17

18 ETI Build out the MLP Measure progress based on validated learning Use modified storyboard showing Validated column Story To Do In Work Done Validated 18

19 ETI Review Dev team demos their working software Team discusses validated learnings with stakeholders Decision: pivot, persevere, or quit 19

20 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 assumptions not identified previously? 20

21 Rinse & Repeat Build series of MLPs to reach final launchable product Use innovation accounting to tune the growth engine Be courageous in pivot/persevere/quit decisions 21

22 Project Simulation 22

23 Project Simulation Goal: build the highest tower possible! Supplies - Dowels 6 thick, 6 thin (do not break!) - Spaghetti sticks 10 (you can break) - Marshmallows 6 - Tape 3 feet - String 3 feet - Scissors - 20 Index cards for capturing experiments only 23

24 Rules Teams of 4 5 Everyone must participate (no observers) Team must use Lean Startup BML loops 30 minutes total time Judging the winner: - A marshmallow must be on the top! - Marshmallows must remain intact - Tower must be free standing - no means of support other than the table or floor - Highest measurement from tower base to top of marshmallow 24

25 Guidance Together: Round 1 Prep 5 minutes - Identify your hypotheses - Write your experiments down on index cards - Prioritize your experiments - Identify which experiments you will do in iteration 1 When I signal, begin your BML loop At end of each BML loop, keep going - Team decision: Pivot or Persevere (no quitting!) - Team decision: experiments for next BML loop - Update your cards for next iteration experiments - Start next BML loop Rinse & Repeat until time expires 25

26 The Winner Is 26

27 Debrief Observations? Did discussing your assumptions/hypotheses help? What were your experiments? Did you ever pivot? Did BML learnings change your subsequent experiments? Do you hate marshmallows now? 27

28 Get Started Now! 28

29 Conclusion Lean Startup principles can and should be used in Agile projects - To help insure we build the right thing 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. 29

30 Team Dynamics Think of your Scrum team as 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 30

31 Gemba Walk Go see the actual process - Purposeful attempt to learn what is really going on - Direct customer interaction - Ask questions - Show respect - Learn 31

32 Team Dynamics (cont) ScrumMaster becomes shusa - Chief engineer responsible for guiding the product to success - Guides team on experiments to MLPs to product 32

33 Introducing: Gemba Gemba: a validated learning Agile method Gemba Scrum Lean Startup Lean 33

34 Gemba Manifesto We value Validated learning over seemingly-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 works 34

35 Final Q&A 35

36 THE END Mike Hall Improving