Mattias SkarinKanban / Lean coach

www.crisp.se

Waking up the Zombie

Agile Lithuania, 2013

http://blog.crisp.se/mattiasskarinmattias.skarin@crisp.se

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We are ready

Step out from development participate and solve customer problems

Take an active part in creating value

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Is this creating of destroying value?

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Timebox

When are you ready?

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How we plan

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Specify Design ...Develop Test

Specify Design ...Develop Test

What really happens

Build quality in:Never pass bad quality forward

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Traditional way to start a business

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Bla blah..

Get funding(build impressivebusiness case)

Build big solution

Who’s gonna need it?

601:32

Doing business by maximizing value

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Is all work of high value?

Our kanban teams

Value demand

Failure demand

Unvalidateddemand

False demand

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The problem is not always being fast..

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Maximize Value, not Output

Henrik Kniberg

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Are you shipping things of value?

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Sources:Standish group study reported at XP2002 by Jim Johnson, Chairman

Danske IT og Telestyrelsen

Always7%

Often13%

Some-times16%

Rarely19%

Never45%

Features and functions used in a typical system

Half of the stuff we build is

never used!

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Danish IT og Telestyrelsen

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2007 Danish public sector report

Between 60 – 70% of all public IT-projects in Denmark fail due to

budget-or time-slippage and wrong estimates

The projects that runs well contains up to 60% not needed

functionality, when done – typically caused by wrong requirement

specs and changed needs

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Fast feedback!Delivery frequency = Speed of learning

Feedback

and

Requests

Demos

and

Releases

Development

team

Stakeholders It is not the strongest

species that

survive, nor the most

intelligent, but the ones

most responsive to

change.

Charles Darwin

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Better than #noestimates –Testing market hypothesis

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We know what the right thing is, let’s build it

Validate hyphothesis (no product yet!) Build product

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Samples

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Parrot cages

$1billion in sales.

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Do I need to care?

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“Apple disrupted the market by redefining the smartphone and attracting developers to a closed,

but very powerful ecosystem.”

Stephen Elop, Nokia CEO, 2011

1600:33

A shift in economical thinking

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Value of using Agile

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Analyze

Implement

Ship

Analyze

Implement

Ship

ROI

Time

Agile

Trad

Trad

Agile

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Value of fast feedback

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Analyze

Implement

Ship

ROI

Time

Agile

Trad

Minimumviableproduct

Agile utilizingfast feedback

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Three economic models

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Economy of Scale Economy of FlowProduct

developmenteconomy

In which one are you operating?

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"All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.“

- Taiichi Ohno

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Economy of product development

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Revenue

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Danger of early filtering

Revenue

Ideas

Keep only ”likely” business cases

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Rick WagonerGM Chief Executive

New York Times, Dec 2008

“G.M.’s biggest failing, reflected in a clear pattern over recent decades, has been its inability to strike a balance between those inside the company who pushed for innovation ahead of the curve, and the finance executives who worried more about returns on investment.”

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Management challenge:Every decision represents a tradeoff

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Flow/Value

Cost

Optimize for costs = drivevalue out

2600:33

Driving development through passion

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Let me ask some questions..

Do the best ideas arrive from product management/product owner who tells us what do develop?

It’s cool to be fast but.. How are you learning if what you are producing (so fast) is of value to customers?

”I don’t have time to to this” .. so how many % of your released features actually sell?

Can development in multi team scenario happen without Project managment or Product Owners?

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Concept name:

Impact:(how do you want to improve the world of the end user? Use a comic strip to illustrate)

Experienced advantages, per role or customer segment (what not to comprimiizeaway)

Market size(estimation)

0 – 100’

100 ’– 300’

300’ – 1’’

> 1’’

Why do it?(from a market perspective)

Grab new customer

Keep customer

Stay on market

Date:Created by:

Expend customer

Be more effective

Other(what:

GUI idea

Productfeatures tradeoffs(the most important)

Basic

Linear functions(the more the merrier)

Surprice(wowfactor)

Browser support (versions we need to be compatiible with)

Firefox IE Safari Chrome Mobile dev.

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Big idea

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Concept owner

Happy client

TeamRelease Function

The person passionate about the idea takes it all the way to happy client

There is no handover

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How do you train a PO in one day?

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Situations where concepts helped

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1. PO Overload

Prepare market events Attend market events Review tenders Market brouchours Visit customers Write documentation Fix customer dissatisfaction Review support tickets Write user stories Acceptance test Redo acceptance test Be available to developers Align roadmap with other teams Meet managers about resource availability...

2. Sprints – but lack of overviewin multi team situations..

[dev] ”I feel I’m a small cogin the machinery...”

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3. Market – ”I ask for a suit but all I get is a lousy T-Shirt”

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??IT Black box

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Context - 2 departments / 6 functions

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3 Market units

Component teams& customer configuration

Marketing

Sysadmins

Development Changemanagement

B2B customers

Operations

Enterprice KanbanPull flow

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Spotting candidates in inflow

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Market feedback - After another year

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95%

3% 2%

Happy! (Customer + Us)

Dev rework

Customer rework

* Sample size: 113

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A concept answers three questions (mandatory sections)

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• What is the impact?• What can be traded away?• What bare necessity should be brought to a development conversation

Impact

What an betraded away?

Concept owner works all the way to satisfied customerIt’s an A3.

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Why can concepts help you with?

• Avoid requirement inflation

• Illuminate factors outside IT that will cause story to break from customer perspective

• ’Split vision’ – not just happy day scenario

• Simplify – be concrete very quickly

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Why care about concepts?

• Training tool

• Prepared conversation

• A standard

• Keep the client alive all the way

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Creating a concept

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Business Development

2. Agree on what key information section the concept should contain. How can we have a prepare conversation with development?

1. 4.

2.

3.

5.

6.

1. Meet

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Enterprice kanban + Concepts + Passion =

More fun, Better products

Example recipe from a multi team scenario:

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410

50

100

150

200

250

300

350

Lead time new products

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Lead time - per quarter

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0

20

40

60

80

100

120

140

160

180

jul12-sept12 oct12-dec12 jan13-mar13

2X

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Development ReleaseBusiness

”I didn’torder that”

Business

Development

Release

Before

Today

Business

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Further reading & section examples

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crisp.se/concepts

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ROI and project budgeting

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No ROI per project?

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1. Don’t use costs for quotation, use market value2. Just split IT costs evenly3. Pay by time you are occupying flow

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3. Pay by time you are occupying flow

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Total: 100d

40d 15d 45d

Customer A

Customer B

Customer C

40d/100d = 40%

15d/100d = 15%

45d/100d = 45%

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Same but simpler. Using portfolio WIP

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Customer A

Customer B

Customer C

DevDesignNew Verify Done

Max 2 per client at any time

+ A client who delivers small requests gets more done+ A client who has good support processes gets more done+ Very easy to administrate

1/3

1/3

1/3

Funding

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When is the right time?

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When is the right time to release?

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Feature completion

Time

Value

Goldplating?

Economic Return

Release window?

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But the most interesting part..

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Sales ConsultancyProductowners

Teams

Agree on economic idea

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My challenge to you

Will setting the release date late and release when product is cool (not just good enough) produce betterproducts and higher margin?

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Do we produce betterproducts without

Timebozes?

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Summing up

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If we create a shared view of..

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• How our economic engine works• How we make tradeoffs

Across functions

Sales Productmanagement

Dev

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Less hierarchy & coordination is needed

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.. more fun

.. better products

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Always a good investment

Understanding value

Fast feedback

Quality in every step

Telling why

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Now – go practice!

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”The definition of insanity is doing the same thing over and over again, expected different results”

- Einstein